Hunting, shooting, fishing.. and then swerving a £2.4m tax bill
MSP avoids huge payment after transfer of dad’s castle
It is now vital that Donald Cameron answers all these questions fully and frankly
Donald Cameron – Ruth Davidson’s chief policy co- ordinator – could have faced a massive HMRC demand if ownership had passed in the event of his father Donald snr’s death.
But instead the family seat passed into his ownership 12 years ago.
Land records obtained by the Sunday Mail show the £ 6.5million Achnacarry Castle and lands were transferred in three tranches in 2000, 2003 and 2006.
Inheritance tax doesn’t have to be paid so long as a property owner lives for seven years after passing the estate on to their heirs.
As Cameron’s dad Donald Sr, 71, is still alive, it means a potential £ 2.4million bill has been avoided using the well-known dodge.
Donald Sr still lives at Achnacarry Castle, while his MSP son is based in the Borders, meaning he is legally required to pay the going rate of rent to his son , wh i ch wou ld normally be taxable.
But for the last two years at least, Cameron has avoided paying any t h ing on thi s income.
His parliamentary register of interests has stated that his “taxable income” from the estate has been zero.
He claims that last year, up to £ 460,000 in income generated – including the rent from his dad, as well as cash from a plethora of other revenue streams – is cancelled out by “costs and losses”.
But opposition politicians have said the MSP now has “questions to answer” over his affairs.
When we challenged Cameron on his windfal l, he claimed he was not responsible for decisions taken by his father and the “trustees of a discretionary trust”.
He said: “The estate transferred to me from my father and from trustees of a discretionary trust over a decade before I was elected as an MSP.
“I was not responsible for those decisions, which were nevertheless taken in full compliance with both the spirit and letter of inheritance tax rules.
“Speculating on what will happen on my father’s death is not particularly pleasant. He is 71 and suffers from MS.
“Yes, my father pays proper market rent for Achnacarry Castle – again in full compliance with tax rules.
“That rent is included in the gross income from property, which I declare in the Register of Interests. As per the register, this figure is gross – and the net figure (after losses are taken into account) is £ 0.
“As before, I receive no income from Achnacarry Estate. I live in the Borders when Parliament is in session and at Achnacarry otherwise.”
Cameron’s dad is Donald Cameron 27th Lochiel, chief of the Clan Cameron, making his son heir to one of the most coveted clan titles.
Cameron worked as an advocate before becoming an MSP. He earns about £50,000 a year, on top of his MSP salary, from non- executive directorships at Murray Income Trust and Edinburgh Worldwide Investment Trust. He also declared a 9.45 per cent stake in Green Highland Renewable s , wor th £700,000.
An SNP spokesman said: “It would appear Donald Cameron has some important questions to answer. Politicians need to adhere to the highest standards of transparency so it is vital that Mr Cameron now answers these questions fully and frankly.”
We revealed earlier this month how Harrow-educated Cameron’s income from Achnacarry had almost doubled, while he claimed not to be making a “taxable” penny.
The estate, near Spean Bridge, has commercial forestry and agricultural land and includes a massive castle.
It also generates income from property lets, boating, fishing, caravans, camping, f ish farming, renewable energy plants, telecoms sites, deerstalking, shooting and utility wayleaves.
But the shadow environment, climate change and land reform secretary’s register of interests claims he has only just managed to break even for the last two years.
Cameron, 41, who is also in charge of Tory
party policy, updated the register to say “gross annual income” from Achnacarry was between £ 450,001 and £ 460,000 in 2016-17 – up from £ 270,000 to £ 280,000 the year before. But he claims net income from the estate, after costs and losses in both years, was zero.
His register also states: “Although this business trades in my name, I don’t receive any taxable income from it.”
If the estate was passed to him when his dad died, there would have been a tax-free threshold of £ 450,000 while the remaining value of the estate would be taxed at 40 per cent for inheritance tax.
That would have involved a bill of around £2.42million.
It is unclear how much rent Donald Sr pays his son. But the 500- acre Aldourie Castle estate in Inverness-shire, which is s of a similar size, is on the rental market t for £50,000 a week – which could work out t at £2.6million a year.