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Football agent own goal
03 August 2018
Former football agent, Jerome Anderson, has lost his £1.2m tax battle with HMRC.
The case, heard at the Upper Tribunal, shows that Anderson and eight others failed in their attempt to avoid large amounts of tax.
The scheme involved investments in the recruitment and training of young footballers at the Bafana Soccer Academy in South Africa.
Anderson attempted to use this investment to claim a £3m artificial trading loss to reduce his tax bill by huge amounts of money.
The Tribunal found that Anderson’s activities were more like those of an investor and this didn’t show that he was trading. That means he couldn’t claim a trading loss and tax was due.
This was the first case to consider s74B Income Tax Act 2007, which is an anti-avoidance provision that denies an individual any sideways loss relief claimed where that individual carries on a trade in a ‘non-active’ capacity and where that loss arises in connection with tax avoidance arrangements.
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