
© Toby Melville / Reuters
Britain's Chancellor of the Exchequer, George Osborne
Chancellor George Osborne's family business made £6 million in a property deal with a developer based in a tax haven, a Channel 4 News investigation has found.
Wallpaper firm Osborne & Little teamed up with a secretive corporation in the British Virgin Islands, to draw up plans to redevelop its former London headquarters into housing.
The companies jointly applied for planning permission for around 45 flats and houses, and once given the go-ahead, Osborne and Little sold its site to the offshore firm for £6,088,000.
A legal expert shown contracts obtained by Channel 4 News said Osborne & Little must have known the developer was based offshore, and had the potential to avoid millions in tax.
At the time, the Chancellor was the beneficiary of a family trust that owned at least 15% of Osborne and Little, so would have personally benefitted from the sale.
It is not known what the Chancellor's personal stake was.
The deal calls into question his commitment to clamping down on offshore firms avoiding tax, a practice he has gone on to publicly condemn as "morally repugnant".
The offshore company, called Nightingale Mews Incorporated, went on to redevelop the site, in Denning Mews, Clapham, and is
estimated to have avoided up to £2 million in tax on its profits.
Comment: Also see: "Morally repugnant": Chancellor George Osborne family business' £6m offshore deal