New England boss Gareth Southgate caught up in £620million ‘tax dodge’ row
Former footie ace's film investments recorded huge losses that investors claimed tax-free, but a tribunal has ruled they must now cough up
NEW England manager Gareth Southgate is embroiled in a £620million tax avoidance row over dodgy investments.
According to , the former Three Lions ace invested in two partnerships set up by film investment firm Ingenious, which funded impressive blockbusters like Avatar and Life of Pi.
Companies House records show he is still a member of both.
But now, along with 400 other investors, Southgate has been slapped with an enormous tax bill after the company recorded huge losses.
So he’ll have more than football on his mind when he’s pitch side at today’s World Cup qualifier against Malta, as will captain Wayne Rooney.
The Manchester United star was also caught up in a tax row last night, after it emerged he faces a £3.5million bill connected to an investment he made with a firm that bought the rights to two Hollywood films.
In Southgate's case, millions were invested in Ingenious to back the British film industry, but the firm claimed a £1.6billion deficit from 2002-2010.
Individual investors in limited liability partnerships were legally able to write off personal losses from the scheme against their income.
But a tax tribunal is now demanding investors cough up a whopping £434million in tax, plus interest and legal costs.
Investors originally claimed £620million in tax relief altogether.
The amount allegedly owed will cover all of Ingenious’ film and subsidiary schemes. Ingenious disputes the tax dodge allegations.
There is no suggestion that there was any wrongdoing by Ingenious or its investors.
It is not known whether Southgate and his fellow investors have settled their tax balance with HMRC or whether they waited for the outcome of the tribunal.
At the time of the tribunal ruling, an Ingenious spokesman said: “We have consistently maintained that our film production partnerships were bona fide businesses run for profit and we are pleased that the tribunal has recognised this.
“However we dispute the basis on which the tribunal has restricted loss relief to investors and are therefore considering an appeal.”
The allegations are yet another blow for the Football Association after Sam Allardyce’s controversial exit from the England manager job.
He was caught by a newspaper sting, offering agents advice on how to get around foreign transfer rules and cruelly mocking previous Three Lions boss Roy Hodgson.
But footy fans were outraged when he walked away with a £1million payoff despite his actions, which he admitted were “an error of judgment”.
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Southgate is interim manager following Allardyce’s sacking, and will put the England squad through their paces for four games before a new manager is chosen.
He has also played for Crystal Palace and Aston Villa, and was part of the Euro 96 England squad.
Many football pundits back him for England manager full time following ‘Big Sam’ Allardyce’s departure.
His first fixture is England vs Malta, which bookies expect England to win.
The FA commented: “This is a private matter.”