Private equity bosses using £700m tax ‘loophole’ – and donating to the Tories

‘Millionaire executives at private-equity firms are avoiding up to £700m in tax a year using a loophole which George Osborne has repeatedly failed to close, according to a new investigation.

Tax campaigners said the arrangement, brokered in private between HM Revenue and Customs and the British Venture Capital Association (BVCA) – amounted to “Government-sponsored tax avoidance on a breathtaking scale”.

The investigation, published by the campaign group 38 Degrees, also revealed 16 private-equity bosses belong to the Conservative Party’s elite Leaders Group of major donors, giving more than £7m to the Tories since 2008.’

Read more: Private equity bosses using £700m tax ‘loophole’ – and donating to the Tories