David Cameron’s Dad’s Offshore Money
What happened to the offshore money built up by David Cameron’s Dad?
One of the first things that Mrs Thatcher did, when she came to office in 1979, was to change the laws so that money leaving the UK was untaxed.
This set off a whole load of offshore money-making schemes for Tory Grandees and party contributors such as Lord Ashcroft, who was the Tory party’s main contributor, and Lord Astor, David Cameron’s father-in-law.
Another of these was David Cameron’s father Ian using his Blairmore vehicle.
Ian Cameron – No UK Tax
For 30 years Ian Cameron was setting up offshore schemes that meant his customers would not pay UK tax.
He also invested his own money in tax havens.
In all that 30 years he never paid any UK tax on the offshore money.
You would have thought that he had many millions.
Ian Cameron’s Worth
How much do you think that someone, who had spent 30 years helping people shelter from UK tax, and paying no UK tax for 30 years on his own offshore income, would be worth?
I would have guessed he would be worth many millions, perhaps in the tens of millions and maybe even in the hundreds of millions.
So what did he leave in his will?
David Cameron’s brother got a house out of it. David Cameron, himself, got £300,000 and his sister got some money as well.
That strikes me as being a piffling amount of money for a guy who had been helping others avoid UK tax for 30 years and who had paid no UK tax on his own offshore money for 30 years.
Ian Cameron’s Money
So, what happened to all the money that he must have made?
It’s possible that he gave it to his children to avoid death duty before he died.
It’s also possible that it is still out there in offshore funds in places like Panama, Jersey, the Bahamas etc.
As there is no revelation, no one would ever know.
We only know, because of a firm of lawyers being hacked in Panama, that David Cameron sold shares in an offshore trust in 2010, before he became Prime Minister, for £31,500 – a profit of £19,000.
No Capital Gains Tax on Offshore Profits
Although he paid dividend tax in the income he got from it, he didn’t have to pay any capital gains tax.
It’s now been discovered that there were another couple of companies in which he had shares that were held offshore.
None of this would have been known without the Panama lawyers being hacked.
Downing Street Statement
Downing Street first said that Cameron had “no shares, no offshore trusts, no offshore funds”.
Later this was clarified to: “The prime minister, his wife and their children do not benefit from any offshore funds.”
Later again Downing St said that there were “no offshore funds or trusts the family would benefit from in future.”
That left wiggle room about the past.
Where’s the Money?
So, what did happen to all the millions that David Cameron’s dad must have made?
Why did he leave such a relatively small amount of money to his children?
Did he manage to give them it before he died?
Was he spectacularly unsuccessful over 30 years in a field where making heaps of money seems to be easy?
Or are there other offshore trusts out there, in other tax havens, that only David Cameron and his family know how to get hold of?
In recent years UK contractors have been taking advantage of measures, both offshore and onshore, to minimise their taxes, just like David Cameron’s dad Ian, David Cameron, George Osborne, Lord Ashcroft and Lord Astor.
What’s sauce for the goose is now sauce for the gander.
For an explanation of those tax minimization opportunities for contractors, where they can keep up to 90% of their money, see Onshore and Offshore Umbrella Companies List.