The separate tax controversies involving Premier League footballers and former deputy prime minister Angela Rayner should serve as a “wake-up call” about the importance of taking sound, professional advice, a senior tax expert has warned.
Steven Martin, senior tax manager at Hampshire-based accountancy and business advisory firm HWB, said the two cases – though very different in scope – highlight the serious financial, legal and reputational consequences of inadequate or incomplete guidance.
“While they differ, as one concerns Stamp Duty only and the other is about wider tax planning and investment strategy, they both underline why trusted, reliable guidance is more crucial than ever,” Martin said.
He added: “Missteps, even unintentional, can have serious consequences. Sound advice isn’t just about minimising tax; it’s about ensuring compliance, protecting assets and making informed, ethical decisions in an increasingly scrutinised financial environment.”
The so-called V11 case saw a group of former Premier League players lose fortunes after investing in tax-avoidance schemes dressed up as film funds and US property ventures. Many of the ventures collapsed, leaving players saddled with significant tax liabilities. Some were pushed into bankruptcy, while others faced lengthy legal battles with HMRC.
“These were persuasive, high-risk investments presented by advisors without the appropriate expertise,” Martin said. “The players relied on assurances without fully understanding the risks.”
By contrast, the Angela Rayner case involved a much narrower issue – Stamp Duty Land Tax (SDLT). Following legal review, she was found liable for the higher, second-home rate of SDLT on her Hove property, resulting in an underpayment of around £40,000. The fallout from the case ultimately led to her resignation from government last week.
“This was a case of insufficient or inappropriate guidance on a specific area of tax law, particularly around trusts,” Martin said. “It illustrates how even a seemingly straightforward transaction can carry risks if advice lacks depth or understanding of the client’s full circumstances.”
While the two controversies differ in context, Martin said they both point to the same conclusion: “unqualified or incomplete advice in areas of complex tax or investments can be perilous.”
He stressed that individuals should always work with regulated, qualified professionals – and seek multiple perspectives when dealing with complex matters.
“Trusted advisors not only save money by ensuring correct decisions upfront, they also protect reputations,” Martin said. “Misplaced trust can mean the difference between a secure retirement and financial ruin.”
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Rayner and footballers’ tax troubles are a ‘wake-up call’, adviser warns