Former Chelsea owner Roman Abramovich may owe the UK up to £1bn in unpaid taxes

Roman Abramovich may owe £1bn in unpaid taxes, linked to Chelsea FC’s financing during his ownership.

Roman Abramovich, the former owner of Chelsea FC, could owe the UK government as much as £1bn in unpaid taxes, according to leaked documents obtained.

The funds, which totalled £4.7bn, reportedly helped to finance Chelsea FC from 2004, when Abramovich, via close associate Eugene Shvidler, used BVI-based companies to manage the investments. 

These also helped finance Chelsea’s significant spending on transfers and wages.

Abramovich initially bought the Premier League club from Ken Bates in 2003 for a reported £140m. 

First reported by the BBC, the Bureau of Investigative Journalism (TBIJ) found that funds linked to the scheme were managed from the UK, making them subject to UK taxation.

This tax avoidance may be worth an estimated £1bn when penalties and interest are factored in.

Shvidler, who lived in the UK, was responsible for the day-to-day management of these investments, according to the leaked documents and a US Securities and Exchange Commission (SEC) filing.

The tax-related controversy emerged after Abramovich was forced to sell Chelsea in 2022 due to sanctions imposed on Russia following its invasion of Ukraine.

The sale of the club, which saw Todd Boehly and Behdad Eghbali take over, has marked a challenging period for the club, which has undergone significant changes in playing staff, coaches, and board members.

Labour MP Joe Powell has called for an investigation by HM Revenue and Customs (HMRC), urging the government to recover significant amounts for public services.

Tax experts suggest that Abramovich’s profits, estimated at £3.1bn, should have been subject to UK corporate tax. 

Funds from Abramovich’s untaxed profits were reportedly funneled through his network of BVI companies to finance Chelsea FC’s operations. Meanwhile, £2.5bn from the club’s sale remains frozen due to ongoing disputes over its allocation.