Labour and Conservative MPs express concern over short-term investors’ tax liabilities if Melrose’s hostile bid for firm succeeds
A Labour and a Conservative MP have written to Britain’s most senior tax collector complaining that a substantial proportion of shares in GKN, the target of a hostile takeover bid, are being controlled by short-term investors in such a way that they will not have to pay tax if their shares are acquired by Melrose.
Labour MP Jack Dromey, who represents Birmingham Erdington, and Conservative MP Jeremy Lefroy, who represents Stafford, told the chief executive of HM Revenue & Customs, Jon Thompson, that they were unhappy that a chunk of the engineering group GKN was controlled by arbitrageurs holding shares via derivatives, meaning they were not liable for stamp duty on disposal.
Related: Melrose pledges to keep its HQ in UK after hostile GKN bid
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