Mediterranean Living

UK Taxes - Wanna go Dutch?

The Stones pay just 1.6% tax

Katie Hind, Daily Mail
2nd August

Documents published in Holland show that Sir Mick Jagger, Charlie Watts and Keith Richards used offshore trusts and companies to ensure tax breaks.

Of the fortune they have accumulated since 1986 for royalties, they have paid just £3.9m in taxes.

The revelation emerged after the three set up a will to ensure that their beneficiaries do not end up squabbling over their money when they die.

The band appear to have been spurred into action after Richards had brain surgery following a fall from a coconut tree this year. Sabine Schuttgens, a lawyer who is involved in setting up the Stones' trusts, said: 'The foundations are to make sure that after the death of the rock stars, there would be no argument among their heirs.'

News of their money management emerged when 63-year-old vocalist Sir Mick, drummer Watts, 65, and 62-year-old guitarist Richards decided to hand over their estates to two foundations in Holland.

Their fortunes have been secretly invested in the country for the past 35 years. The trusts will control the rights to the Stones' music, performances, merchandise and films. Under Dutch law, certain information-must be made public – allowing details of their extraordinary tax break to emerge.

The band started banking in Holland in 1972 because, reportedly, they did not trust British finance houses.

Under Dutch law, there is no direct tax on royalties. They have been tax exiles ever since - meaning they cannot make Britain their main home. Their holding company, Promogroup, has offices in both Holland and the Caribbean, allowing them to reduce tax liabilities.

As a latecomer to the band, Ronnie Wood, 59 - who replaced Mick Taylor in 1975 - does not qualify to have his assets managed by the same group as the others. Watts is said to be worth £80m, and as main songwriters, Richards is worth £185m and Sir Mick's fortune is as much as £205m. There is no record of Bill Wyman, 69, who left the band in 1992, in the registration for the trust.

U2 were obviously so impressed by the Stones's fiscal arrangements that the Irish rock band now share the group's Dutch financial director, Jan Favie.