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Britain is in the midst of a brutal cost of living crisis. Energy and rent prices are soaring, and many of us are struggling to pay for the essentials. Despite this, some of the richest amongst us are failing to hand over their fair share of tax thanks to a sweetheart deal between HM Revenue and Customs and private equity fund managers.
We are sure you’ll agree that this is blatantly unjust and so Good Law Project together with Dale Vince, founder of Ecotricity, have decided to legally challenge HMRC to right this wrong.
The deal was made back in 1987, when private equity industry representatives successfully lobbied the Inland Revenue, now HMRC, to pay less tax. Their success meant that the money made by executive managers is classed as ‘capital gains’ and not ‘trading income’. As a result, instead of paying a tax bill of 47%, that figure was slashed to 28% for private equity fund managers.
We, working with leading tax lawyer Dan Neidle, believe the agreement was unlawful.
We think it’s a sweetheart deal and HMRC have, in essence, turned a blind eye to the realities of the private equity sector ever since.
Were private equity to be taxed properly, HMRC could collect an estimated £600 million more in revenue each year, from just a couple of thousand people. Help us bring this case to close the private equity tax loophole for good, and ensure everyone contributes the right amount into the public purse!
Dale Vince OBE has instructed Good Law Practice, along with Ben Jaffey KC of Blackstone Chambers and Natasha Barnes of 1 Crown Office Row. Dale Vince is a member of Patriotic Millionaires UK, a non-partisan network of British millionaires whose core mission is to leverage the voice of wealthy individuals, and ensure that those with wealth make their fair and proper tax contribution.
You can read our pre-action protocol letter here.
10% of the funds raised will be a contribution to the general running costs of Good Law Project. It is our policy only to raise sums that we reasonably anticipate could be spent on the work we are crowdfunding for. However, if there is a surplus it will go to develop and support further work we do to fight for a better fairer future for all.
This legal campaign, launched by Good Law Project and the Ecotricity founder, Dale Vince, has forced UK tax authorities to admit that some private equity fund managers have been paying tax at the wrong rate for more than 35 years. If you’d like to read more about the outcome of this legal campaign, you can do so here.
This significant win was only made possible by your generous donations – thanks so much for supporting this crowdfunder.
Our fight for accountability isn’t easy and it is only possible thanks to the support of thousands of people like you, who give a monthly donation to support our work. If you’re in a position to start a monthly donation, you can do so here.
Thanks to the amazing support of Good Law project supporters, we raised £15,141.
If you’d like to support our general work, you can do so here: