Frankie Dettori's ex-advisor ordered by HMRC to stop promoting tax avoidance schemes

A former solicitor who advised Frankie Dettori about his tax arrangements before the jockey declared bankruptcy has been ordered to stop promoting avoidance schemes.

It emerged at the end of last year that the famous jockey, who relocated to the US in 2023, had been attempting to untangle his tax affairs in Britain after they were challenged by HMRC.

In December he lost a legal battle over his anonymity in proceedings at a specialist tax tribunal, after HMRC and the media said he should be identified.

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After the hearing Dettori revealed issues had arisen after he had employed specialist tax advisers to look after his and his family’s financial affairs.

“A structure was created and I was told that it had been approved by HMRC,” he said in a statement. “Years later HMRC is now challenging that structure. My former advisers have since been dismissed.”

In March the jockey made the shock announcement that he was filing for bankruptcy, saying: “For the last six-months, my advisors have been working with HMRC in an attempt to find a solution to my financial situation.

“Regretfully, I will be filing for bankruptcy. I am saddened and embarrassed by this outcome and would advise others to take a stronger rein over their financial matters.

“Bankruptcy is a major decision and its consequences will affect me for many years. I am relieved to be drawing a line on this long-term matter, which enables me to reset and focus on my international riding career.”

On Thursday the HMRC announced it had taken unprecedented action against the man behind the scheme, Paul Baxendale-Walker, a struck-off solicitor and former barrister, ordering him to stop promoting two tax avoidance schemes or face penalties or criminal prosecution.

A statement said: “Paul Baxendale-Walker must now cease promoting these arrangements after HM Revenue and Customs (HMRC) issued Stop Notices to him.

“This marks the first time Stop Notices have been issued to an individual rather than to a company promoting tax avoidance schemes, demonstrating HMRC's commitment to use all available powers, regardless of how promoters structure their operations.

“HMRC considers both schemes covered by the Stop Notices promoted by Mr Baxendale-Walker to involve artificial arrangements, including the use of offshore trusts, designed to claim tax deductions without genuine business purpose. The schemes create complex structures to ensure money remains available to the users while claiming to avoid the tax due.

Jonathan Smith, HMRC's Director of Counter Avoidance, said: "The courts have already concluded that Mr Baxendale-Walker designed and sold multiple tax avoidance schemes that don't work as claimed, and now these Stop Notices send a clear message that we'll use every tool at our disposal to protect public finances from tax avoidance schemes."