01/Aug/2014 - Last News Update: 03:55

Sir Chris Hoy defends tax arrangements

Category: Scotland

Published: 23rd Jun 2012 14:23:00

Olympic cyclist Sir Chris Hoy has defended his tax arrangements after it was reported that he received a loan from his own company.

Sir Chris, who is to carry the Olympic flame in Manchester, said neither he nor his company disguised remuneration.

He also said he takes his responsibilities as a taxpayer "as seriously as I do as an athlete".

The 36-year-old said: "Everything I have done is as a UK resident, and is UK taxable and not offshore."

The athlete was responding to claims made in the Guardian about his tax affairs.

Sir Chris, who is Britain's most successful Olympic cyclist, did say that he took a loan from his company Trackstars Limited in 2010, but said it was repaid in full in October 2011. He said the practice is standard in most small companies in the country.

"The dividends that I took to repay the loan were in fact taxed at the highest rate," he said.

"I saw an opportunity to buy property and with the guidance of my advisers I borrowed money from my company to do so. The loan was subsequently repaid shortly thereafter by declaration of fully taxable dividends."

Sir Chris has previously received lottery funding, but this ended in October 2008.

"I am very proudly British and my responsibilities as a British sportsman do not stop once I step off the bike," he said.

"I take my responsibilities as a taxpayer as seriously as I do as an athlete."

Sir Chris's comments come after comedian Jimmy Carr faced the public following revelations about his tax arrangements.

He appeared onstage at the Stockport Plaza for a live comedy gig, and the latest episode of his TV panel show, Eight Out Of 10 Cats, was broadcast on Channel 4 on Friday.

Mr Carr has said he "made a terrible error of judgement" by using the K2 tax avoidance scheme and has now ended his involvement in it.

The K2 tax scheme is a way of lowering the amount of tax paid. It is legal and Mr Carr made clear in his statement it was fully disclosed to tax authorities.

Prime Minister David Cameron had called Mr Carr's use of the arrangement "morally wrong".

More than 1,000 people are thought to be using the Jersey-based K2 scheme, which is said to be sheltering £168m a year from the Treasury.

Source:
BBC News External Link Show Citation

Latest News

Harvard Citation

BBC News, 2012. Sir Chris Hoy defends tax arrangements [Online] (Updated 23rd Jun 2012)
Available at: http://www.ukwirednews.com/news/1436497/Sir-Chris-Hoy-defends-tax-arrangements [Accessed 1st Aug 2014]

News In Other Categories

  • Usain Bolt & Glasgow 2014: The life of a sprint superstar

    Whether or not Usain Bolt did get caught out criticising these Commonwealth Games - the reporter insists, the athlete vehemently denies - the subsequent headlines were another indication that life for Bolt is not like that for any other athlete.
  • Avoid data breaches and keep the cyber thieves at bay

    If you want to find out how hard it is to avoid becoming victim of a data breach, just ask the NSA.
  • Artist Mark Andrew Webber's vast graphic map of Berlin

    When artist Mark Andrew Webber spent months walking the streets of Berlin, he wasn't sightseeing - he was sign seeing.
  • Express Motors staff in Penygroes arrested in fraud investigation

    Five people arrested by North Wales Police in connection with a fraud investigation work for a Gwynedd bus company, BBC Wales understands.
  • Kincora abuse investigation stopped by MI5 says ex-army officer

    A former army intelligence officer has said he was ordered to stop investigating allegations of child sexual abuse at a boys' home in the 1970s.
  • Bristol Academy extends reach overseas with first foreign students

    With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com