Former Chelsea owner Roman Abramovich ‘could owe UK £1bn in unpaid tax’ – but Russian oligarch denies any wilful wrongdoing

Former Chelsea owner Roman Abramovich is facing claims that he could owe HM Revenue and Customs up to £1 billion in unpaid taxes after an alleged botched attempt to avoid tax on hedge fund investments.

The Russian billionaire, who led Chelsea for almost two decades through the most successful period in the club’s history, has denied any deliberate wrongdoing.

But according to a report by the BBC and the Bureau of Investigative Journalism, leaked documents suggest that Abramovich routed investments worth around £4.7bn through companies in the British Virgin Islands, despite evidence indicating that these investments were managed from the UK.

If proved, this could mean that the profits should have been subject to UK taxation.

Some of the funds that helped bankroll Chelsea during Abramovich’s tenure can allegedly be traced back to companies involved in the scheme.

However, Abramovich’s lawyers have said that the ex-Blues owner ‘always obtained independent expert professional tax and legal advice’ and ‘acted in accordance with that advice’.

Billionaire Abramovich owned Chelsea for almost two decades between 2003 and 2022

Abramovich bought Chelsea in 2003 and remained in charge until 2022.

Under his ownership, the club spent heavily in the transfer market, splashing out more than £2bn on player acquisitions.

The Russian oligarch’s financial backing transformed the club into a European powerhouse and help to deliver 21 major trophies, including five Premier League titles, five FA Cups, three League Cups, two Champions League crowns, and two Europa League triumphs.

However, his tenure at Stamford Bridge came to an abrupt end in 2022 following Russia’s invasion of Ukraine. The UK government imposed sanctions on Abramovich due to his alleged links to Vladimir Putin’s regime, effectively forcing him to sell the club, despite not being permitted to receive the proceeds. 

The club was eventually sold for £4.25bn to a consortium led by American businessman Todd Boehly.

The sale proceeds were earmarked for charitable causes, but nearly three years later the funds remain frozen due to disagreements over their allocation.

Despite his exit and alleged links to Putin’s regime, Abramovich remains a very popular figure among Chelsea fans, who have chanted his name on multiple occasions since he left.

However, Labour MP Joe Powell has urged HMRC to hold Abramovich to account if he is guilty of tax evasion. Powell has called for an investigation into the claims and for any unpaid taxes to be recovered, suggesting that Abramovich could owe ‘very significant amounts of money that could be invested in public services’. 

Under Abramovich’s reign, Chelsea won 21 major trophies – including the FIFA Club World Cup

Powered by heavy investment from Abramovich, Chelsea become one of Europe’s top clubs

Abramovich was replaced in 2022 by Todd Boehly, after his consortium purchased the club

Following his sale of Chelsea, Abramovich has not visited the UK. He currently divides his time between Istanbul, Tel Aviv and Sochi.

Chelsea remain one of the wealthiest clubs in world football despite no longer being bankrolled by Abramovich.

Since the arrival of Boehly and Co, the Blues have spent well in excess of £1bn on new signings.

Chelsea currently sit sixth in the Premier League table after 23 rounds of fixtures, having ended the previous campaign in the same position.