Virgin Care, one of private health providers that has been awarded contracts worth hundreds of millions of pounds, for more than 230 NHS and social care services, has been found to include offshore tax havens in its corporate structure. According to the research and analysis performed by the chartered accountant at Tax Research UK, there are 13 holding companies between Virgin Care and its parent company, some of them offshore, domiciled in the British Virgin Islands.
Richard Branson’s company having offshore ownership is not currently recording profit in the UK after administrative expenses. Virgin Care borrows money solely from a holding company which is registered in the UK but it owes money to other companies involved in the structure, and the ultimate parent company is in the BVI.
Although Virgin Care is structured in such a way that it is unlikely to pay any taxes in the UK, it was recently awarded contracts worth £500m, for provision of 30 primary care services in England.
Virgin Care is just one of 10 private health companies that have UK-funded contracts to provide NHS services and use the benefits of tax havens. Off these ten companies, only two pay a significant corporation tax in the UK.