EY and property tycoon Jamie Ritblat settle dispute with HMRC for ‘significant’ sum
HM Revenue & Customs (HMRC)’s tax dispute with accounting firm EY and Jamie Ritblat, a British property investor has been resolved after the parties reached a confidential settlement.
The tax authority filed lawsuits against Ritblat and the Big Four firm two years ago over the amount of taxes Ritblat paid on £141m in profits made by his property investment firm Delancey.
Jamie Ritblat – the son of former British Land owner Sir John Ritblat – founded Delancey in 1995, through which he later bought London’s Olympic Village in 2011 via a joint-venture with Qatar’s sovereign wealth fund.
The case centres on a £400 settlement paid to HMRC by Ritblat in 2015.
HMRC filed a claim to the High Court in 2022 against EY and Ritblat over his tax affairs.
However, City PM, revealed in May that the dispute was placed on hold as the parties were in settlement talks.
It has now been confirmed that the parties have reached an agreement, bringing a conclusion to the dispute. A HMRC spokesperson said that “this is a good result for the UK taxpayer.”
“We have secured a significant settlement sum for the public purse, in respect of the disputes with both the RHD claimants and EY.”
“The 2015 settlement agreement will end and any further distributions from the trust will be taxed as normal. This reflects the outcome we would have reasonably expected to achieve if successful at court – without the time and cost of further litigation,” the tax agency added.
While a spokesperson for Delancey said: “Delancey is pleased to confirm that we have settled our civil dispute with HMRC in connection with the tax treatment of certain carried interest related payments made by the DV4 Trust to 24 Delancey employees.”
“We are disappointed it was necessary to initiate legal proceedings against HMRC to achieve this, however we are pleased that ultimately all parties were able to find a compromise to resolve the matter,” they added.
While a spokesperson for EY said: “We can confirm that EY has reached a settlement agreement with HMRC in relation to this matter. The terms of the settlement are confidential.”