About 9,000 tax officials are to move into an office that is owned by Conservative donors, the Reuben family, through a company based in a tax haven.
HM Revenue & Customs has taken a 25-year lease for the 463,000 sq ft Pilgrim’s Quarter in Newcastle, which is being developed by Reuben Brothers.
The properties are owned by a company called Reuben Brothers (Newcastle), which is a subsidiary of the British Virgin Islands-based Taras Properties
There is no suggestion of wrongdoing by the Reuben family, but critics have said the “optics aren’t great” for the government.
The deal was announced just hours after Boris Johnson shared a table with David and Simon Reuben at a fundraising dinner on Monday. The Reuben family has donated more than £1.9m to the Conservative Party, with £800,000 being donated since Johnson became prime minister. Jamie Reuben also made a £50,000 donation to Johnson’s leadership campaign in 2019.
A statement from Reuben Brothers said: “The BVI status is historic and affords no tax advantages to the UK company, which will operate and pay taxes as a UK company.”