SIR - The news that millionaire executives at private equity firms are avoiding up to £700 million a year in tax using a loophole that Chancellor George Osborne has repeatedly failed to close is shocking and will rightly concern most people who pay their taxes. It seems a private arrangement was brokered between HM Revenue and the British Venture Capital Association (BVCA) to allow what has been described as “government-sponsored tax avoidance on a breathtaking scale”.
The so-called, ‘Mayfair tax loophole,’ allows private equity executives to pay relatively low tax on the profits their investment funds make from buying and selling companies. An investigation published by campaign group, ‘38degrees’ revealed this news and also that 16 private equity bosses belong to the Conservative Party’s elite Leaders Group of major donors, which has given more than £7 million to the Tories since 2008.
David Hornsby, West View Avenue, Wrose
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