In 2001, HM Revenue and Customs (HMRC) signed a 20-year PFI/PPP contract, the Strategic Transfer of the Estate to the Private Sector (STEPS) with the Mapeley Group to manage the HMRC estate (see page 38). HMRC sold its freehold properties - two thirds of its estate - to Mapeley for £370m and immediately leased them back from Mapeley who also provided facilities management services. Mappeley immediately transferred the freehold and long-leasehold properties to company in Bermuda to avoid UK taxation of capital gains. Buried on the last page of the latest National Audit Office report on STEPS (NAO, 2017) is the following:
Mapeley's offshore status |
|
Public Accounts Committee recommendation | HMRC's actions |
HMRC should take whatever action it can to persuade Mapeley to bring the properties onshore. | HMRC did not progress this recommendation. |
HMRC should track the savings Mapeley actually obtains (from being based offshore) and Mapeley should provide full and timely information to enable the Department to do this. The Department should seek to recoup any additional benefits Mapeley obtains. |