Theresa May’s husband’s investment bank employer has paid no UK corporation tax in the past eight years, it was revealed today.
Philip May, 60, works as a relationship manager for Capital Group, an American financial services company with assets of £1.1 trillion with offices in Belgravia.
Since 2009 the company has turned over £467million but made losses of £125million meaning they don’t have to pay corporation tax – a levy on profits.
Despite the huge losses it directors were paid £43million in salaries, pensions and other benefits – but it is not know what Mr May earns.
Philip May, 60, (pictured with his wife yesterday) works as a relationship manager for Capital Group, which paid no UK corporation tax in the past eight years despite turning over £467million in that period
Labour MP John Mann told the Mirror: ‘It is fundamentally un-British to avoid tax. The Prime Minister should raise this at the breakfast table immediately.’
While tax expert Prem Sikka added: ‘It’s very odd a business can pay substantial amounts to directors while not turning a profit.’
Mr May devises retirement plans for the company’s clients. Because of the sensitivity of his position, he does not make investment decisions or deal with the clients face to face.
Unlike Sir Denis Thatcher, who had retired from a successful career in the oil industry by the time he entered Downing Street in 1979, Philip has a full-time job.
His job in investment banking has already been the object of scrutiny by critics seeking to find holes in his wife’s pledge to run a government for all, rich and poor.
Philip May used to work as a fund manager for Prudential Portfolio Managers and for de Zoete & Bevan.
A former associate has described him as ‘an excellent colleague with strong strategic insights and a creative, thoughtful approach to investment. He is very much a team player.’
For the past ten years he has worked as Capital Group, a private firm based not in the City but in Belgravia.
But despite having a huge turnover every year they have failed to produce a UK profit.
Capital says it will start UK corporation tax again next year, after a 10-year break caused by the credit crunch.
Capital Group said: ‘Like other UK businesses, Capital International Limited does not pay corporation tax in years where losses are incurred or in profitable years where prior losses are carried forward.
‘CIL will resume corporation tax in 2018.’
No 10 declined to comment on the story, the spokesman added: ‘Neither the PM or Philip May have direct offshore investments – everything has been declared.’