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View the article online at http://citywire.co.uk/wealth-manager/article/a750565

Take That stars face £20m tax avoidance bill

by Dylan Lobo on May 12, 2014 at 07:58

Take That stars face £20m tax avoidance bill

Three members of Take That face a huge tax bill after a tribunal ruling.

Gary Barlow (pictured), Howard Donald and Mark Owen, along with manager Jonathan Wild were reportedly among a 1,000 people who invested in a £66 million Icebreaker Management Partnership, which was pitched as a music industry investment scheme.

However, The Times revealed that tribunal Judge Colin Bishopp deemed the partnership had been set up to help dodge tax

The four men are directors of Larkdale LLP, one of the 50 partnerships sets up by Icebreaker designed to benefit from tax relief allowed to those who contribute to the arts.

According to the tribunal, Larkdale reported a £25 million loss shortly after the quartet invested, meaning this loss could be offset against tax.

The four could be forced to repay a reported  £20 million.  

‘The underlying, and fundamental, conclusion we have reached is that the Icebreaker scheme is, and was known and understood by all concerned to be, a tax avoidance scheme,’ Bishopp said.

HMRC said it would not tolerate any abuse of the system in a strongly worded statement.  

‘HMRC has put in place generous reliefs to support genuine business investment and our tax reliefs for the creative industries work well, enabling the UK's world-class film, television and video production companies to compete on the global stage,’ it said.

It added: ‘But we will not tolerate abuse of the system by people trying to dodge their tax obligations.

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