LV will be held by tax haven after £ 530m deal: Private equity predator registers shell company in Jersey

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LV will be held by tax haven after £ 530m deal: Private equity predator registers shell company in Jersey


The insurer LV will be owned by an offshore tax haven if private equity sharks acquire £ 530 million next month.

LV bosses have agreed to sell 178-year-old Mutual to Bain Capital – but the deal needs the support of members.

It has now emerged that the American purchasing firm based in Boston has registered a shell company in Jersey for the acquisition.

LV bosses agree to sell 178-year-old Mutual to Bain Capital – but the deal requires member support

The vehicle, known as BCC Blake Bidco Limited, was registered in December last year, leading MPs to question whether LV pays more tax in the UK and maintains LV mutual values.

Private equity firms often use the complex web of offshore companies in the Isle of Man, Jersey and the Cayman Islands to take advantage of lower tax and disclosure requirements.

The revelation sent a letter to Labor MP Gareth Thomas, chairman of the all-party parliamentary group for mutuals, and Matt Bopoli, the forerunner of Bain.

Thomas told the Daily Mail: ‘Setting the company upside down in one of their UK offices, Bain does not sit well with the idea that Bain wants to maintain mutual values.

‘It questions whether the new owner really intends to maintain offices in Hitchin, Exeter or Bournemouth and what level of tax the firm will pay in the future.’

Sources close to Bain said the company is still a UK tax resident and will pay corporation tax on all profits.

In the letter, Thomas Bain demanded the release of prospective board names and vowed that the purchase would not be used as a launch pad for most mutuals in the UK.

He questioned whether LV board member Alison Hutchinson had been contacted about the possibility of democratizing the Yorkshire Building Society, where he is currently vice president. LV was founded in 1843 to help the poor of Liverpool avoid the humiliation of the poor.

Members have little more than two weeks to vote on a deal that has drawn opposition across Westminster and across the city.

Bain has been criticized for offering only £ 100 to LV policyholders and employers, but has failed to guarantee jobs.

Bain Capital said: ‘We take the time to consider and answer Gareth Thomas at the right time. We note, however, that the letter contains a number of misleading and misleading assumptions. ‘

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