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Labour and the Liberal Democrats have called for Nigel Farage to clarify whether he saved tax on a house in his constituency, after a BBC investigation questioned whether his partner did, as Farage has said, buy the home with her own money.
The Guardian first reported in May that the house in Clacton, which Farage initially said he had bought himself, is in fact wholly owned by Laure Ferrari, his long-term partner.
While Farage said the arrangement was because of security reasons, Ferrari purchasing the house would have saved the Reform UK leader an estimated £44,000 in the higher rate of stamp duty to which he would have been liable, given he already owns other properties.
Speaking at last week’s Reform conference, Farage confirmed to the Mirror that the house was Ferrari’s sole UK asset, but dismissed as “disgusting” the idea that this was an arrangement put in place to save tax.
He also denied lending or giving his partner money towards the £885,000 price of the property in Frinton-on-Sea: “I haven’t lent money to anybody. I didn’t give her money. She comes from a very successful French family and she can afford it herself. It’s convenient, it works, and she loves it there.”
However, a BBC investigation has examined Ferrari’s family background, and was unable to find any evidence that they are wealthy.
It said her father’s haulage business in Strasbourg was liquidated in 2020, and her parents are living in a flat in a suburb of the French city worth about £300,000, co-owned by the couple and their two daughters.
The BBC team said the family also owned the former premises of the haulage company, which is rented out for an estimated €8,000-€9,000 (£7,000-£7,800) a month.
Ferrari, 45, formerly owned a clothes shop, which went out of business. Companies House records show she is the director of Baxter Laois Limited, the business home of Farage’s brand of gin. However, its most recent accounts showed it had assets of only about £1,000.
According to the BBC, Farage’s solicitors, London-based Grosvenor Law, said the firm had received written advice from a leading tax KC. The solicitors said: “That advice concludes that there is no underpayment of SDLT (stamp duty land tax), that SDLT paid was properly calculated and that there is no basis to suggest there has been any improper avoidance or evasion of tax in respect of the purchase.”
It was not explained why the advice was sought, or when.
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It would be legal for Farage to have given Ferrari the money for the house purchase but, if that were the case, he would face accusations of hypocrisy given his condemnation of Angela Rayner over her underpayment of stamp duty.
Anna Turley, the MP who chairs the Labour party, said: “Nigel Farage repeatedly misled his constituents and the British public about buying a home in his constituency. There are now far too many unanswered questions about the house he stays in while in Clacton. He must urgently come clean with the public as to whether he financially contributed towards the purchase of this property.
“Misleading the public for political gain about buying a constituency home is appalling in itself. But if he deliberately put in place this arrangement to avoid paying his fair share of tax that would be even worse.”
Sarah Olney, the Liberal Democrats’ Cabinet Office spokesperson, said: “Nigel Farage has serious questions to answer over this. After spending days attacking others over their tax arrangements he now needs to be frank and honest about his own.”
A representative for Farage and Grosvenor Law were contacted for comment.
