TaxPersonal TaxFayed’s tax status in jeopardy

Fayed's tax status in jeopardy

Harrods owner Mohamed Al Fayed will take a battle with the Inland Revenue to the House of Lords, after a Scottish court ruling last week threw out his appeal against the removal of his special tax status.

Link: Harrods’ boss loses tax appeal (

A spokesman for the Egyptian-born tycoon said that the decision by the Court of Session in Edinburgh could have ‘huge ramifications’ for taxpayers who enter into agreements with the taxman. ‘Mr Fayed always thought the action the Inland Revenue took was wrong and that he was singled out,’ said the spokesman. ‘He told me this could seriously damage the economy and turn away wealthy investors.’

But the Revenue was adamant: ‘We entered into an agreement in good faith, which we later recognised was inappropriate,’ a spokesman said.

Under that agreement, drawn up in 1997, Al Fayed paid just £240,000 in tax a year.

Related Articles

HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

5m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

5m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

5m Emma Smith, Managing Editor