Liberty Tax Scheme Database Leaked, HMRC Clampdown

A secret database was recently leaked naming a number of high profile celebrities who have used the Liberty tax scheme as a way of avoiding paying tax in the UK between 2005 and 2009. There were also a number of wealthy businessmen and professionals such as QCs, doctors and political party donors named on the database of approximately 1,600.

The estimated value of the scheme is £1.2bn. It is reported that, essentially, investors into the Liberty tax scheme were able to offset paying income tax in the UK by generating ‘false offshore losses’.

Among those named in the recent reports are Sir Michael Caine, George Michael, Katy Melua and Gary Barlow, who was also named as an investor in the Icebreaker tax scheme.

HMRC has spent a number of years investigating the Liberty tax scheme, and despite it appearing legitimate, it is set to be challenged in court in 2015.

The Liberty tax scheme is the latest tax avoidance strategy to be targeted by HMRC in its continued clampdown on tax avoidance in the UK. It is likely that the investors in the scheme will face large tax bills following the leak of the database.

We would urge any individual who may have used similar tax avoidance schemes to seek professional advice from a tax investigations and disclosures expert. Forths have considerable experience is advising clients through voluntary disclosures to HMRC.

To talk to a trusted professional in complete confidence call us on 0113 387 5670 or fill out an Enquiry Form .