We expose more than 100 super-rich celebrities including David Beckham, Robbie Williams and Geri Horner involved in £700m tax relief scheme, who could now face even BIGGER tax bills
Pop stars, sporting legends and politicians have been linked to the controversial scheme which HMRC claims was a form of avoiding tax
THE Sun today reveals the names of a vast swathe of super-rich celebrities who cashed in on a controversial tax relief scheme.
More than 100 face bigger tax bills after losing a legal challenge over the £700million plan. The list includes pop stars, sporting legends, TV personalities and politicians.
Among names linked to the controversial film plans which offered tax breaks were Robbie Williams, Phillip Schofield and Victoria and David Beckham.
HM Revenue and Customs argued the scheme was a form of avoidance and won a ruling last August to claw back more than two thirds of the total tax relief claimed.
A ruling this week, revealed by The Sun, upheld the original decision and concluded the incentives were not “allowable deductions”.
An appeal is yet to be heard, but more than 100 celebs could now face bigger tax bills as a result.
They were among 1,400 investors who poured cash into the Ingenious “partnerships” which helped produce movies including Avatar and qualified for tax breaks designed to support the UK film industry.
But HMRC said Ingenious claimed relief on artificial losses from its films.
That meant the schemes were not legitimate investment opportunities but a means of avoiding tax.
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Others on the list, obtained via Companies House records, include Sir Alex Ferguson, singer Craig David, ex-England manager Steve McClaren and Sacha Baron Cohen.
Actor Neil Morrissey was on the list, but reached agreement with HMRC in 2013 and has no outstanding liabilities to pay further tax.
Many of those involved have been knighted or received honours from the Queen. Others are Lords.
Last night a tax source said: “Those investors who chanced their arm by taking this to court may end up paying significantly more in tax as a result of this decision.”
HOW IT WORKS
FINANCE firm Ingenious sold tax-efficient investments in Hollywood films such as Avatar.
Sums invested ranged from £160,000 to over £60million.
Stars expected to benefit from tax breaks introduced in 1997 to support the British film industry.
They were able to claim their outlay as tax relief over a period of 15 years.
Tax had to be paid at the end of the 15 years, but investors could make more money out of the delayed tax payment than they were eligible to pay.
It is not claimed the schemes were doing anything illegal.
Sources said some £420million tax was avoided but, with interest, the total owed would near £700million.
Ingenious said most of the disputed tax bills had already been paid by investors but would be reclaimed from HMRC if it won its appeal.
The tribunal found all but one of Ingenious’s partnerships was legitimately “trading”.
The specific tax positions of the named celebs are unknown and it is not clear how many have settled their claims.
Many Ingenious investors claimed they were wrongly advised to enter the schemes.
An HMRC spokesman said: “We are pleased the tribunal agreed the vast majority claimed in tax relief was simply not due.”
But an Ingenious spokesman said: “We strongly disagree with the tribunal’s clarification.”
There is no suggestion that any of those listed on these pages were involved in any illegality.
LIST OF CELEBRITIES INVOLVED
- Victoria Beckham
- Geri Halliwell
- Melanie Chisholm
- Simon Fuller
- Peter Gabriel
- Phillip Schofield
- Robbie Williams
- George Michael
- Craig David
- Gareth Gates
- Ant and Dec
- Anne Robinson
- Davina McCall
- Neil Morrissey
- David Suchet
- Sacha Baron Cohen
- David Heyman
- Jeremy Paxman
- Kate Adie
- Peter Fincham (ex-ITV boss)
- Lord Grade of Yarmouth (ex-BBC chairman)
LIST OF POLITICIANS INVOLVED
- Lord Clive Hollick (Labour donor)
- Lord Davis of Abersoch
- Andrew Mitchell MP (Tory)
- Rt Hon Lord Sainsbury (Tory)
- Lord William Waldegrave (Tory)
LIST OF FOOTBALLERS INVOLVED
- David Beckham (ex-Man Utd)
- Dennis Wise (ex-Chelsea)
- Dean Windass (ex-Hull)
- Steven Gerrard (ex-Liverpool)
- Anton Ferdinand (ex-QPR)
- Marcus Bent (ex-Everton)
- Jamie Carragher (ex-Liverpool)
- Nicky Barmby (ex-Spurs)
- Dominic Matteo (ex-Liverpool)
- Wes Brown (ex-Man Utd)
- Nicky Butt (ex-Man Utd)
- Michael Hughes (ex-C Palace)
- Steven Caldwell (ex-Burnley)
- Joey Barton (ex-Man City)
- Martin Keown (ex-Arsenal)
- Jonathan Woodgate (ex-Leeds)
- Colin Hendry (ex-Blackburn)
- Emile Heskey (ex-Liverpool)
- Clinton Morrison (ex-Palace)
- Danny Murphy (ex-Liverpool)
- Scott Parker (ex-Charlton)
- John O’Shea (ex-Man Utd)
- Hayden Mullins (ex-Palace)
- John Arne Riise (ex-Liverpool)
- Trevor Sinclair (ex-West Ham)
- Mamady Sidibe (ex-Stoke)
- Robbie Keane (ex-Spurs)
- Neil Lennon (ex-Leicester)
- Joleon Lescott (ex-Man City)
- Gary Lineker (ex-Leicester)
- Paul Konchesky (ex-Leicester)
- Francis Jeffers (ex-Everton)
- Eoin Jess (ex-Aberdeen)
- Alain Goma (ex-Fulham)
- Ryan Giggs (ex-Man Utd)
- Andy Griffin (ex-Newcastle)
- Tim Cahill (ex-Everton)
- Jussi Jaskelainen (ex-Bolton)
- Michael Bridges (ex-Leeds)
- Matthew Etherington (ex-W Ham)
- Paul McVeigh (ex-Norwich)
- Gudni Bergsson (ex-Bolton)
- Simon Charlton (ex-Bolton)
- Matthew Elliott (ex-Leicester)
- Dean Richards (ex-Wolves)
LIST OF MANAGERS INVOLVED
- Steve McClaren (Ex-England)
- Sir Alex Ferguson (Ex-Man Utd)
- Carlo Cudicini (Ex-Chelsea assistant)
- Martin O’Neill (Ex-Rep of Ireland)
- David O’Leary (Ex-Leeds)
- Gary McAllister (Ex-Leeds)
LIST OF CRICKETERS INVOLVED
- Michael Vaughan
- Marcus Trescothick
- Matthew Hoggard
- Nasser Hussain
- Alec Stewart
- David Gower
- Craig White
- Duncan Fletcher (former England coach)
We erroneously included the newsreader Alastair Stewart in the above list. We apologise to him for this error.