HER Majesty’s Revenue and Customs has lost a High Court challenge on the controversial Football Creditors’ Rule.
Under the rule, if a football club goes into administration, its creditors from the footballing world are guaranteed to get all their money back, while other creditors only get a proportion.
HMRC launched its bid to get the rule overturned after Pompey went into administration in 2010, because whilst football players, agents, clubs and others were guaranteed their money, HMRC would see only a tiny proportion of the £37m it was owed by the club.
Today, High Court judge justice David Richards dismissed HMRC’s attempts to have the rule overturned.
The decision will be appealed against by HMRC.