Roman Abramovich May Face £1 Billion Tax Bill After Hedge Fund Investigation

GBUnited Kingdom|

Roman Abramovich, the sanctioned Russian oligarch and former owner of Chelsea FC, could owe the UK government up to £1 billion due to a tax avoidance scheme related to his hedge fund investments, according to evidence reviewed by the BBC.

Leaked documents indicate that an estimated $6 billion in investments were funneled through companies in the British Virgin Islands (BVI) but were effectively managed from the UK, which would subject them to UK taxation. A considerable portion of these funds reportedly financed Chelsea FC during Abramovich's ownership.

Abramovich’s legal representatives denied claims of tax evasion, stating he acted on expert advice. However, Labour MP Joe Powell has urged HM Revenue and Customs (HMRC) to investigate the situation urgently, highlighting the potential for significant funds that could benefit public services.

Key to this investigation is Eugene Shvidler, a former Chelsea FC director, who reportedly played a crucial role in managing these investments while residing in the UK. The latest insights suggest that decisions regarding these investments were made in the UK rather than the BVI, contradicting the tax avoidance strategy.

The investigation into Abramovich's dealings is part of a broader examination by international journalists into corporate practices related to Russian elites. As the UK government navigates long-standing issues regarding these financial schemes, the Russian oligarch's potential tax bill could surpass other high-profile cases, including that of Formula One executive Bernie Ecclestone.

As the situation evolves, there remains uncertainty regarding the distribution of £2.5 billion from the sale of Chelsea FC, which is currently held in a frozen account amid disagreements on its intended use.

Weekly Newsletter

Loading...

More from United Kingdom

Researchers Discover Hidden 'White Hydrogen' Reserves That Could Power Earth for 170,000 Years

In a groundbreaking discovery, scientists have identified substantial deposits of natural hydrogen, referred to as "white hydrogen," located deep within the Earth’s crust. This find, revealed by a collaborative effort involving the University of Oxford, Durham University, and the University of Toronto, has the potential to supply clean energy for the next 170,000 years without carbon dioxide emissions. Unlike conventional hydrogen, which is typically produced through fossil fuels, white hydrogen occurs naturally and can be extracted without releasing harmful pollutants. Researchers emphasize that this represents one of the cleanest energy sources available, capable of revolutionizing the global energy landscape and providing energy independence as the world shifts away from fossil fuels. The hydrogen is formed through chemical reactions between specific rock types and water and has been mapped in locations such as Canada's Canadian Shield. While accessing these reserves will involve innovative technologies, researchers have initiated a new company, Snowfox Discovery Ltd, aimed at commercializing this resource. With global hydrogen demand expected to increase significantly by 2050, the implications of this discovery could reshape energy strategies worldwide.
GBUnited Kingdom

UK Husband Convicted for Years of Drugging and Raping Wife

A disturbing case of long-term abuse has emerged in the United Kingdom, where a man was convicted of drugging, raping, and photographing his former wife without her consent. The woman, referred to as "Kate" by the BBC to protect her identity, revealed that the horrifying ordeal was brought to light when her husband made a chilling confession, stating, “I’ve been raping you. I’ve been sedating you and taking photographs of you for years.” Kate explained that the assaults occurred while she was unconscious from sleeping medication he had allegedly added to her nightly tea. Following his confession, she suffered from severe emotional and physical distress, leading to panic attacks and declining health. Although initially reluctant to report the abuse for fear of its impact on their children, her mother eventually contacted the police. After a lengthy investigation and a review process prompted by the victim's appeal, charges were filed. Kate's former husband was convicted of multiple sexual offenses and sentenced to 11 years in prison. Kate subsequently shared her experiences, emphasizing that “abuse isn’t always loud or visible.”
GBUnited Kingdom

Fatal Explosion at Cannabis Lab Claims Child's Life in Newcastle

A tragic explosion at a cannabis production lab in Newcastle has resulted in the deaths of a seven-year-old boy and a 35-year-old man. The incident, which occurred on October 16, 2024, at a flat on Violet Close, led to Reece Galbraith, 33, being sentenced to 14 years in prison for manslaughter and drug-related offenses, according to The Metro. The explosion happened during the manufacturing of cannabis concentrates using highly flammable butane gas, destroying six homes and injuring six other residents. Archie York was asleep in his flat above the lab at the time of the blast and was killed alongside Jason Laws. The boy's mother, Katherine Errington, described him as "cheeky, kind, and full of life," expressing her anguish over Galbraith's reckless actions. The investigation led by Detective Chief Inspector Katie Smith emphasized the grave dangers of illicit drug manufacturing, urging the public to report suspicious activities to prevent such tragedies. Over 140 residents had to evacuate, with many still displaced as recovery efforts continue.
GBUnited Kingdom