It has been announced that HMRC have begun investigating tax breaks in government schemes which were created to regenerate deprived areas throughout the UK, including areas in Glasgow, Birmingham and Newcastle.
The schemes use the Business Premises Renovation Allowance, which was created by Labour in 2007, and provides one-hundred percent capital allowances on money spent on carrying out conversion or renovation works on commercial properties within the qualifying areas, which have been left unused for a minimum of a year.
However, it has now been reported that six schemes worth £450 million, which were designed to stimulate growth and development throughout deprived areas of the UK; have recently been accused of “entirely artificial” levels of developer income, and according to reports the taxman is now investigating the tax relief generated by investments.
Reports have suggested that sports stars including Manchester United striker Wayne Rooney, and the world’s number one golfer, Rory McIlroy could become embroiled in the investigations, as they are reported to be two of hundreds of investors who collectively paid £31 million last year through one of the schemes, to shelter £68 million from HMRC.
As an accountant in Bristol, Elaine Durrant specialises in offering tax advice, guidance and support to businesses and individuals.