View the article online at http://citywire.co.uk/money/article/a881103
Footballers join class action after tax scheme losses
Action group set up for footballers and other celebrities who have lost millions through unauthorised tax avoidance schemes.
Law firm Withers has a launched class action for footballers who face losing millions from investing in tax avoidance schemes.
The action group, which is open to other high profile, affluent celebrities caught up in these schemes, is being led by Tessa Lorimer, special counsel in Withers’ tax investigations team, and litigation partner Roberto Moruzzi.
The pair will work with action group specialists Litigation Management, which will provide funding and administrative expertise.
The news comes as football stars explore their options after a clampdown by HM Revenues & Customs (HMRC) on tax avoidance schemes.
HMRC has set an April 2016 deadline for investors in these schemes to repay any tax deemed to be avoided, with the tax office aiming to have reclaimed tax from around 33,000 individuals by this date.
HMRC is publishing information about their disclosure of tax avoidance schemes on its website and in many cases individuals and companies are issued with accelerated payment notices to ensure that the disputed tax is paid up front.
At the end of last year it emerged that a host of retired footballers lost more than £100 million through a film investment scheme that was sold through advisory firm Kingsbridge Asset Management.
The scheme was said to have at least 100 footballers on its books, including former Manchester United and England stars Rio Ferdinand and Andy Cole, ex-Arsenal players Kevin Campbell and Martin Keown, and Match of the Day pundits Danny Murphy (pictured) and Robbie Savage.
Murphy (pictured) said he felt ‘angry’ after claiming he was mis-sold the scheme, while Campbell, who has filed for bankruptcy after losing £7 million, said: ‘when I see the paper work, it’s horrendous.’
It has since emerged that a number of English cricket stars, including Ashes heroes Andrew Flintoff and former captain Michael Vaughan, also lost fortunes investing in film schemes.
Withers believes that these investors have a stronger case than most in claiming they were mis-sold these investments as they should never have been targeted by promoters in the first place.
‘Many footballers were targeted by promoters of marketed avoidance schemes as they are high earners who often rely on the advice of others to manage their finances,’ Lorimer said.
News sponsored by:
Making the most out of Europe's potential means seeing things differently. Learn more about how BlackRock's focused approach to investing in Europe helps investors unlock the continent's vast potential.
In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.
More about this:
More from us
- Celebrity investors warned of £520m tax demands
- VAT Fraud: ‘Celebrity lifestyle’ gang jailed for missing trader scam
- Forget Gary Barlow, 'normal people' are tax man's target
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add email@example.com to your safe senders list so we don't get junked.