TAX PROBE FOR FERGIE?

Last updated : 01 December 2002 By Editor

From The Observer:

Sir Alex Ferguson, the multi-millionaire manager of Manchester United, faces a potentially embarrassing tax probe by the Inland Revenue.

Questions have been raised about whether Ferguson, who earns £2 million a year, has used a private company he jointly runs with his wife to avoid paying tens of thousands of pounds in tax.

Last month, Ferguson's company, ACF Sports Promotions, admitted it had been filing incorrect accounts for the past six years. Any tax investigation will centre on a £330,000 property that Ferguson sold to one of his sons last year for only £228,500.

For the past six years, Ferguson's private company claimed the property was owned by the United manager himself. However when it came to the property sale, Ferguson's firm claimed it was the owner of the building.

An independent accountant who has analysed the accounts of ACF Sports Promotions, suggests a possible reason for the switch was to help Ferguson avoid paying more than £30,000 in tax.

If Ferguson had personally sold the property to his son, he would have had to pay 40 per cent capital gains tax on the amount the property increased in value.

Bob Russell, Lib Dem spokesman on sport, is to write to the Inland Revenue to ask it to investigate Ferguson's company. He said: 'Many football supporters are on low wages and have to pay tax at a full rate. I don't think it is right that an exceptionally well-off manager should be able to avoid tax by using clever accounting tricks.'

A statement issued on behalf of the Manchester United manager through his son's firm Elite Sports said:

'The property you refer to was sold by ACF Sports Promotions to one of Sir Alex Ferguson's sons. At no point was this an attempt to avoid paying tax - indeed, a professional evaluation of the property was obtained and the under value has been returned on Sir Alex's income tax return. The incorrect filing of year-end accounts you refer to was acknowledged in the accounts and rectified going forward.'