Andrea Leadsom under pressure to publish tax return as Tory leadership hopeful faces criticism

Candidate's speech to party’s 1922 Committee described as 'rambling'

Pressure is mounting on Conservative leadership hopeful Andrea Leadsom to publish her tax return after it was reported that a company run by her husband and owned by her brother-in-law used a potential tax avoidance mechanism once described by George Osborne as “morally repugnant”.

A spokesperson for the energy minister said she had not been aware that Gloucester Research Limited had used an employee benefit trust (EBT) for at least five years up 2011.

EBTs were clamped down on by HMRC after 2010 following concerns they were being used to avoid tax.

Mrs Leadsom, a former investment banker, said she supported “in principle” the idea of publishing her tax return, but has since indicated that she will only do so if she reaches the final run-off stage of the Tory leadership election.

Rivals Michael Gove and Stephen Crabb have already published their tax returns. Frontrunner Theresa May has also faced demands to publish details of her tax affairs, following a precedent set by David Cameron in the wake of the Panama Papers revelations.

EBTs, which allow money or shares to be transferred from a company into a trust to pay employees in the form of a long-term loan, or when they are retired or no longer a UK resident, are not illegal, but have often been misused to avoid tax.

It is unclear how Gloucester Research, which has donated more than £70,000 to Mrs Leadsom, used EBT or whether Mrs Leadsom’s husband benefitted.

The energy minister has surged into second place in the early stages of the Conservative leadership contest, and has won the support of many senior figures on the Eurosceptic wing of the party – including former leadership frontrunner Boris Johnson.

However, there were reports that many MPs were unhappy with her performance during a hustings event in Westminster on Monday night, with one unnamed senior minister describing Mrs Leadsom’s speech as a “car crash” and criticising her response to members’ concerns about her support from Ukip donor Arron Banks and his Leave.EU campaign group.

Another MP said her speech to the party’s 1922 Committee, which included a section on early years development for children, a subject Mrs Leadsom is passionate about, was “rambling”.

Mrs Leadsom has said she “no allegiances” to Ukip.