In what it describes as an exclusive, the Daily Star reports that three high-profile Premier League figures face a HMRC probe into a multi-million pound property scheme.
The newspaper claims that Manchester United stars Ryan Giggs and Wayne Rooney, together with West Ham United manager Sam Allardyce, could be ordered to hand over a fortune if the scheme is found to be a tax scam. Golfer Rory McIlroy is also implicated in the story.
The probe centres around the stars’ investment in Waverton Property LLP which takes advantage of measures introduced in 2007 to encourage the renovation of older commercial property. The incentives involved are said to offer huge rewards to investors and could now fall foul of the government’s crackdown on tax loopholes.
The Daily Star spoke to wealth management consultant Richard Simpson who told them that Waverton is among a number of property investment vehicles currently being “aggressively” investigated by HMRC.
“They are looking into whether the managers of these schemes have been investing higher than necessary levels of developer income to attract higher tax breaks,” he explained.
“I would not advise my clients to enter into schemes of this nature as there is a risk of some being found to be investment schemes merely for the purpose of tax avoidance.
“If that happens then members will be required to pay back the tax due plus any fine imposed by a judge.”
Harcourt Capital, the group behind the Waverton scheme, insists that it aims to identify investment opportunities which offer generous tax benefits rather than seeking to exploit tax breaks.
“Our investments benefit from statutory incentives designed to encourage investment in commercial property in specific areas designated by government and the EU as disadvantaged,” said Harcourt Capital partner Nick Astaire.
“These investments are expected to create jobs and generate new business and our investors are taking significant commercial risk.”
HMRC refused the newspaper’s request to comment on Waverton as they will not discuss individual cases, but they confirmed that they will continue to probe such schemes and that they have a “highly successful record in the courts.”
There has been no comment from Giggs or Rooney but a representative of Allardyce denied that Waverton was a tax avoidance scheme.
