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Lord Alan Sugar reportedly tried to avoid a £186m tax bill by declaring himself a non-UK resident for tax purposes, according to both The Bureau of Investigative Journalism and The Sunday Times.
According to their reports, the business personality “intended to pay no UK tax on one of the largest dividends in corporate history” from £390m that he drew from his own company in the 2021-22 tax year.
The joint investigation by The Sunday Times and Bureau of Investigative Journalism found that he tried to argue he was not based in Britain at the time.
Sugar reportedly argued that he qualified for non-residency, somebody who does not live in Britain and spends no more than 90 days here in a year.
However, according to The Bureau of Investigative Journalism, his attempt to become a non-resident failed because he is a member of the House of Lords, “who are automatically ineligible” as they are automatically UK residents and UK domiciled.
It said: “TBIJ and The Sunday Times can reveal the billionaire has alleged he wasn’t warned of his ineligibility by tax advisers. In documents seen by TBIJ, it is alleged he said he would have given up his Lords seat had he known it would save him the tax bill.
“After learning he could not declare himself non-resident, Sugar paid one of the largest tax bills in the country that year. There is no suggestion Sugar has broken the law in attempting to avoid or reduce the bill.”
A statement from Lord Sugar’s representative to The Bureau of Investigative Journalism said: “Lord Sugar is a UK tax resident, and he always has been. All his income has been taxed on the basis of his UK residency, and is fully paid up.”
