Deayton and Baddiel used charity schemes
TV stars named as users of charity tax schemes that tax authorities regard as beyond the pale
David Baddiel, the stand-up comic and writer, and Angus Deayton, the TV
presenter, both used charity tax schemes that enable users to exploit Gift Aid
rules to write off huge income tax bills.
Baddiel and Deayton admitted to using the schemes to
The
Sunday Times this weekend, which published details of the arrangements
the two used.
HMRC is
pursuing
the schemes vigorously, with senior figures regarding the abuse of charity
reliefs as beyond the pale, and one of the worst excesses of the tax industry.
The arrangements work by investors putting money into a cash shell whose
value rises hugely on flotation. The investor then gifts the inflated shares to
charity, qualifying for tax relief under the
Gift
Aid scheme.
Deayton is alleged to have qualified for a tax rebate of £144,000 on one
arrangement, and was said by the paper to have have repeated the process with
other companies.
Baddiel bought shares in the same company, qualifying for a tax rebate of
£160,000.
A spokesman for Baddiel said: ‘Like many entertainers, Baddiel’s tax affairs
are looked closely at by the Revenue. It has made inquiries into his gifts to
the Chairman Charitable Trust and the value of shares transferred by him has
been agreed.’
Deayton’s spokesman said: ‘The Charitable trust established by our client has
benefited considerably from the gifts made by him. In excess of £100,000 has
been distributed to a large range of charitable organizations.’
Further Reading
Suspected
abuse of charity tax rules sparks HMRC raids
TV
stars in charity tax dodge inquiry