Bradley Wiggins Tax Dodge
Bradley Wiggins Tax Dodge
Tour de France and Olympic Gold Medal Winner Bradley Wiggins is accused of slashing his tax bill by using an offshore scheme which the Treasury have declared ‘abusive’ and ‘artificial’.
Bradley Wiggins is reported to have joined the Twofold First Services tax-avoidance partnership that will save him thousands of Pounds in income tax by taking advantage of farming tax reliefs. The Treasury though, is reported to have taken action to close the loophole and will investigate and challenge any arrangements of this kind.
Twofold Partnership Management is based in the Cayman Islands which is known as a favoured tax haven, the firm though is believed to be behind Tax Trade Advisors which is also linked to NT (‘No Tax’) Advisors who are the company responsible for other such schemes including the one involving comedian Jimmy Carr and Bill Roache the actor who plays Ken Barlow in the soap opera Coronation Street.
Bradley Wiggins apparently joined the Twofold First Services tax-avoidance partnership in March of this year. The same time as the Treasury issued a strongly-worded press release referring to an ‘abusive’ tax avoidance scheme’ without naming it as the same scheme as the Bradley Wiggins Tax Dodge scheme. Revenue & Customs (HMRC) said it had closed down a ‘contrived’ scheme being marketed at the time, and that it would challenge any other schemes similar to the Bradley Wiggins Tax Dodge scheme, put together before the 13th of March.
Using a scheme similar to the Twofold scheme, individuals can end up paying no tax at all. They do this by investing a sum of around £100,000 but claim tax relief on £1 million. This happens because each £100,000 is enhanced by a loan of £900,000 secured by the partnership. That sum is then paid directly to the participating farmer who promptly repays it to the bank. Accountants then find a way to creatively ‘write down’ the investment so that it becomes a paper loss, even though there has been no cash loss whatsoever. The advisers retain the original £100,000 which goes to pay the banks and advisers fees and the partnership members claim they have made a loss of £1 million, which they set against their income. This is what makes the Bradley Wiggins Tax Dodge work.
A statement released by Bradley Wiggins said: ‘The vast majority of Bradley’s income is taxed at the standard and higher rate. The investment in Twofold Services involves only a small percentage of Bradley’s income. Bradley Wiggins has paid, and will continue to pay, his fair share of tax.