Nigel Farage faces scrutiny over who funded £885,000 Clacton home

After Rayner controversy, questions mount over whether Farage sought to avoid stamp duty

Nigel Farage faces scrutiny over who funded £885,000 Clacton home

Nigel Farage, leader of Reform UK and MP for Clacton, is under pressure to clarify the financial arrangements behind the purchase of a £885,000 property in his constituency.

The four-bedroom house, which includes a heated swimming pool, was acquired in November last year and is registered solely in the name of his partner, Laure Ferrari. The property was bought outright, with no mortgage involved.

Farage has maintained that Ferrari funded the purchase independently, attributing her ability to do so to her family’s wealth. However, investigations into French property and company records have not substantiated claims of significant family assets. Ferrari’s father previously ran a haulage business in Strasbourg, which was liquidated in 2020. The family home, a flat in a Strasbourg suburb, is valued at around €350,000 (£302,000) and is co-owned by Ferrari, her parents, and her sister. The family also co-own the former business premises, now rented out, but local estate agents estimate the rental income to be modest.

Ferrari, who met Farage while working as a waitress in the late 2000s, has a background in small business, having previously run a clothing shop with the help of a bank loan. The business was unsuccessful, and she later worked as a waitress. More recently, she has served as director of a consultancy, Baxter Laois Limited, which owns Farage’s gin brand. The company’s latest accounts indicate limited activity, with over £10,000 owed to creditors and minimal assets.

The manner in which the Clacton property was purchased has led to allegations that the transaction may have been structured to avoid an additional stamp duty surcharge of £44,250, which would have applied if Farage had been listed as an owner due to his existing property holdings. Farage has denied providing funds for the purchase, stating that Ferrari is the sole legal and beneficial owner.

“I haven’t lent money to anybody. I didn’t give her money,” Farage told The Mirror. “She comes from a very successful French family and she can afford it herself. It’s convenient, it works, and she loves it there.”

Despite asserting no involvement in the transaction, Farage has sought legal advice from King’s Counsel specialising in taxation. His solicitors, Grosvenor Law, stated: “Grosvenor Law has received written advice from leading tax King’s Counsel. 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.”

A spokesperson for Farage reiterated: “Laure Ferrari is the sole legal and beneficial owner of the property. It belongs solely to Laure and was purchased with funds which belong to her. All taxes were properly paid. Nigel has no financial interest in the property whatsoever.”

The situation has drawn criticism from political opponents, particularly after Farage’s recent comments on similar issues involving other politicians. Anna Turley, chair of the Labour Party, said: “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 or if he has any financial interest in it.

“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. Farage has had plenty to say about other people’s tax affairs recently, so it’s only right that he provides evidence to prove he has told the full story here. It’s the least the British public would expect.”

The scrutiny on Farage comes in the wake of Angela Rayner’s resignation as deputy prime minister and housing secretary, after it emerged she had underpaid £40,000 in stamp duty on her Hove flat. Rayner’s case centred on the misclassification of her property status, which resulted in her paying a lower rate of stamp duty than was due. She “deeply regretted” not seeking additional specialist tax advice and took “full responsibility” for the mistake.

Both cases highlight the heightened focus on property transactions and tax compliance among public figures. As the mortgage sector continues to navigate regulatory scrutiny, these high-profile incidents serve as reminders of the importance of transparency and adherence to tax obligations.

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