The Brexit saga has seen yet another interesting twist. H.M.R.C. (the U.K. taxing authority) has issued sizable tax demands under the U.K.’s inheritance tax laws to several key Brexit figures including Peter Cruddas and Robert Edmiston, who donated large sums to Vote Leave for conducting Brexit campaigns in 2016.
Donations to political parties are usually tax exempt in the U.K.1 However H.M.R.C. is of the view that the exemption is not available to donations made by individuals for a referendum campaign. A member of the Conservative Party reacted to the demand by stating that the government is penalizing people who had the audacity to challenge it. Another M.P. said that taxes must be paid if rightfully owed. Reportedly, at least one Remain supporter has received a demand as well.
Companies and financial institutions are not liable for inheritance tax and therefore do not face additional tax.