Nigel Farage said he has no "financial stake" in a house bought by his partner in his Clacton constituency, rejecting suggestions that the arrangement was designed to avoid a higher rate of stamp duty.
The Reform UK leader told reporters the money used to buy the four-bedroom Frinton-on-Sea home was "legally hers", noting the deeds and council tax were in his partner Laure Ferrari’s name. The property was bought for £885,000 and, according to Land Registry documents, was purchased without a mortgage and is registered solely in Ms Ferrari’s name.
Farage denied that the arrangement avoided more than £44,000 in extra stamp duty that would have been due had he been the purchaser and already owned another property. Under UK rules, a higher rate of stamp duty applies if the buyer owns an additional residential property. Farage said he did not earn any of the money used to buy the house and that estate agents carried out "know your customer" checks.
Pressed on whether he had provided funds at any point, Farage replied, "No. No, no, no, listen, can I be clear about this. The money was legally hers." He added, "I don't have any financial stake in it whatsoever, other than she lets me stay there but then given that I'm her partner that's not really that unusual." Farage said he had sought written advice from a leading King's Counsel tax expert and had paid for the advice to ensure the purchase was "legal and right," saying he was concerned some media reports were "beginning to stray into libel territory."
The disclosure follows a BBC investigation that questioned how Ms Ferrari could afford the purchase without a mortgage. The broadcaster said it examined French property and company records but was unable to find evidence that Ms Ferrari’s parents had the means to fund the acquisition. Ms Ferrari is listed as director of a consultancy called Baxter Laois Limited, the registered owner of Farage’s gin brand. Company accounts filed in the UK show limited activity, with about £10,000 owed to creditors and assets of roughly £1,000.
If Farage had been the source of funds but Ms Ferrari bought the property in her name, the purchase would be legal under UK law. However, political opponents and some commentators have argued that using a partner’s name to buy a property can be perceived as a way to reduce tax liabilities. Labour party figures accused Farage of having misled the public after he previously told interviewers he had exchanged contracts on a Clacton house he would be living in following his election as MP last year.
Labour chairwoman Anna Turley said he must "urgently come clean" about any personal contribution to the purchase. Farage’s solicitors released the written KC advice, saying it concluded there was no underpayment of stamp duty and that "there is no basis to suggest there has been any improper avoidance or evasion of tax in respect of the purchase."
The row has heightened scrutiny of the Reform leader after his public criticism last week of Labour figures over stamp duty arrangements. Farage told reporters he had given all the answers he wished to give and that he had spent heavily on legal advice to ensure compliance. He said he had been "this week to a King's Counsel tax expert and paid a lot of money to make sure that everything we've done is legal and right" and described the week as "very expensive."