Sun. Dec 15th, 2019

Singer Cheryl Tweedy Shockingly Caught In Alleged Tax Avoidance Scheme

Cheryl Tweedy is reportedly facing legal action from HM Revenue and Customs (HMRC) over an alleged tax avoidance scheme.

The singer, 35, is said to be accused of using an artificial employee bonus structure which allowed her to pay the lower rate of capital gains tax, instead of income tax and national insurance.

Her personal company CC Entertainments – which was set up when the TV personality went by her former husband Ashley Cole’s surname – was reportedly named in court documents, obtained by The Sunday Times.

The tribunal papers are said to have revealed that HMRC tried to make Cheryl’s the lead case in court action against 56 separate companies accused of similar tax avoidance.

Yet presiding over the case, Judge Jennifer Dean – who earlier this month ruled in favour of Lorraine Kelly after HMRC presented her with a £1.2million tax bill – is thought to have prevented the singer from having to face that particular ordeal.

It is not known how big a claim Cheryl’s firm faces, but the documents show HMRC are wanting significant sums from the companies that used the schemes, the publication reported.

HMRC says a number of appellants are near settling and in the process of, or have settled their appeals, with £128 million so far being recovered.

In 2012, it was revealed that Cheryl had created an Irish subsidiary for her firm to take advantage of the lower corporation tax rate – saving 11.5 per cent at the time.

The accountancy firm which marketed the bonus scheme, Grant Thornton, told The Times: ‘The growth securities ownership plan was developed to help our clients link their employees’ contribution to the performance of their businesses and are not free of tax.

‘In common with other incentive plans, if there is growth in value in the share or security that is issued to the holder of those shares/securities, then that increase in value is correctly taxed as a capital gain.

‘It’s a common approach… We have been open and transparent about this plan from the outset, including the HMRC’.

MMH has approached Cheryl’s representative for comment. 

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