With ordinary families and local businesses now having to pay full stamp duty on property purchases Lib Dem council group leader, John Pugh is calling for a clampdown on tax avoidance schemes used by the rich to buy homes and assets.
This follows the release this week of the Pandora papers which revealed details of the schemes used- even by former PM Tony Blair who bought a £6.45M town house north of Mayfair using an offshore company.
Cllr Pugh said: “Unfortunately and embarrassingly, the Council is in a poor position to criticise the Blairs and others as it appears to have used the same loophole to buy the Bootle Strand in a ‘tax efficient’ way by forming and using a Luxembourg company.
“However, there the differences end. Both the Blairs and Sefton might have saved on stamp duty, but the Blairs ended up with an appreciating asset and the Council’s shopping centre has nose-dived in value.
“Bought for £33M, the Strand has recently been revalued at £14M with the council taxpayers picking up the tab.
“There is nothing illegal in what either the Blairs or the Council have done.
“The device suits purchasers and some sellers,it is claimed,actually demand it but it is a ‘loophole’.
“Buying property is not meant to be wrapped up as buying a company. It ends up with the rich avoiding tax that ordinary families can’t escape. “
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