UK stars set to pay back millions after tax-dodge scheme scuppered

Gary Barlow, left, and Sir Michael Caine invested in the scheme. Photos / Getty Images

A list of celebrities including Gary Barlow and Sir Michael Caine have lost millions of pounds after a landmark court ruling over a tax avoidance scheme.

More than 1600 public figures, doctors and judges poured around £1.2 billion ($2.28b) into the controversial Liberty scheme from 2005 until 2009.

It is thought that the landmark ruling could lead to investors, many of whom are celebrities, having to pay back in excess of £325 million ($618m) from similar schemes.
The arrangement created a tax loss for investors which they could offset against other income.

But the legality of the scheme was challenged in 2014, with contributors now discovering that cash taken by HM Revenue and Customs will not be returned.

According to The Sun, the Upper Tribunal court ruled the scheme allowed the super-rich to create artificial offshore losses, therefore claiming reduced tax bills.

Among the top contributors were George Michael, who handed over £6.2 million ($11.8m) before his death last year, and Take That singer Barlow, 46, who piled in £4.46 million (8.49m).

Actor Sir Michael, 81, is said to have tried to shelter £600,000 ($1.1m). In 2009, he threatened to return to America if the top band of income tax reached 51 per cent.

Katie Melua also invested in the scheme. Photo / Getty Images

Anne Robinson, who reportedly invested £4 million ($7.6m) in the scheme after paying £280,000 ($533,000) in fees, spoke in 2002 of how she paid 'vast taxes'.

Robinson hosted BBC's Watchdog for more than a decade, presenting herself as a crusader for ordinary consumers.

She reportedly earned £6 million ($11.4m) for a two-year contract with the BBC for presenting The Weakest Link.

Four members of the Brit Award-winning Arctic Monkeys - Alex Turner, 28, Jamie Cook, 29, Nick O'Malley, 29, and Matt Helders, 28, also poured cash into the scheme.

Each paid between £38,000 ($72,000) and £84,000 ($160,000) in fees to shelter between £557,000 ($1.06m) and £1.1 million ($2.1m) in Liberty.

Liberty is one of many legal tax-avoidance loopholes to have been exposed in recent years.

Every year about £3 billion ($5.7b) is lost through legal avoidance schemes.

Barlow, 43, later apologised for using an avoidance scheme and said he would settle his tax affairs, while Melua, 30, repaid what she owed.