Rock star Sting has avoided paying 50p income tax on £20million of his earnings by giving himself a bumper payout, it was revealed today.
The singer and poverty campaigner saved himself up to £2million just before the rate was raised, his latest filings with Companies House show.
Accounts for Sting\’s firm, Steerpike (Overseas) Limited, disclose he earned £20.045million in the calendar year 2009.
The massive payout – which pushed his company into a loss of £20.49million – came ahead of the imposition of the 50p tax rate in April last year.
It meant he was legally able to avoid £2million in income tax – paying £8million at the 40 per cent rate rather than £10million at the 50 per cent rate.
But in the previous accounting periods and in the year after he paid himself just £60,000.
It certainly brings forward revenue but does it in fact increase it?