Blair is very good at hiding his wealth.
Tony Blair's financial arrangements have been subject to significant scrutiny, particularly after he left office. Here are some of the methods that have been reported or alleged for hiding or managing his wealth:
Complex Corporate Structures:
Blair has set up a web of companies, limited liability partnerships (LLPs), and limited partnerships under various names like Windrush Ventures and Firerush Ventures. These entities have been used to manage his consultancy income, book deals, and other financial ventures. The use of LLPs was particularly highlighted for allowing him to keep his finances opaque while still operating within UK law.π·
Property Ownership through Companies:
The Blair family has amassed a significant property portfolio, which includes homes in London and Buckinghamshire. Some of these properties are owned through companies or trusts, which can obscure the direct ownership and financial details. For instance, there have been reports of properties being transferred among family members, which might serve to avoid certain tax obligations or to keep wealth within the family.π·
Offshore Transactions:
The Pandora Papers leak in 2021 revealed that Blair and his wife Cherie saved on stamp duty by buying an offshore company in the British Virgin Islands (BVI) that owned a London property. This transaction allowed them to bypass stamp duty that would have been due if they had bought the property directly. The company was later closed, and the property was brought under UK tax and regulatory regimes.π·π·
Charities and Foundations:
Blair has established several charities and foundations, like the Tony Blair Faith Foundation and the Tony Blair Institute for Global Change, which can be used for both philanthropy and to manage income streams. These organizations attract donations and provide Blair with a platform to engage in both paid and unpaid work, potentially mixing personal and charitable finances in complex ways.π·
Consultancy and Speaking Fees:
Much of Blair's post-political income comes from high fees for consultancy work for various international governments, corporations, and speaking engagements. These earnings are often routed through his corporate structures, making it difficult to track the exact amount and distribution of his wealth.
Inheritance Tax Avoidance:
There have been mentions of Blair using specialized limited partnerships to potentially avoid inheritance tax by setting up arrangements where his children have an ongoing interest in the partnership's wealth as limited partners. This method leverages the partnership structure to pass on wealth without incurring heavy taxes.π·
Public Statements and Denial:
Blair has publicly downplayed his wealth, often stating that reports of his fortune are exaggerated. This might serve to manage public perception rather than to hide wealth outright, but it contributes to the ongoing discourse about his financial status.
It's important to note that while these methods have been reported or speculated upon, there's no definitive proof of illegal activity; rather, they are strategies that have been criticized for their opacity and complexity. The structures used are often legal but designed in ways to minimize tax liabilities or to keep financial affairs private.