PM: Not necessary for Barlow to return OBE over tax row

Take That star Gary Barlow has been urged to hand back his OBE after a tribunal ruled he had invested in a scheme set up to avoid paying millions of pounds of tax.

The chair of the Public Accounts Committee said Labour's Margaret Hodge said Barlow "might want to show a bit of contrition by giving back his OBE".

Conservative MP Charlie Elphicke agreed, telling The Times: "People who have seriously abused the tax system should be stripped of their honours."

Barlow, who led plans for the Queen's Diamond Jubilee concert, was given an honour for services to the entertainment industry and to charity in 2012.

Watch: PM says 'not necessary' for Barlow to return OBE

It is "not necessary" for Gary Barlow to return his OBE despite his involvement in an aggressive tax avoidance scheme, the Prime Minister has told Good Morning Britain.

David Cameron said the Take That singer had "done a huge amount for the country".

But the Prime Minister said the scheme that Barlow and bandmates Howard Donald and Mark Owen invested in was clearly "wrong" and said: "It's right that they are going to have to pay back the money."

The Take That trio may have to pay back £26 million after Judge Colin Bishop ruled that 51 partnerships set up by Icebreaker Management were used for tax avoidance purposes.

A management company for three stars of pop band Take That has said it is "extremely disappointed" with a court ruling that they may need to pay millions of pounds after claims of tax avoidance.

Icebreaker Management set up 51 partnerships for investments totalling £26 million from Take That members Gary Barlow, Howard Donald and Mark Owen, but Judge Colin Bishopp said the partnerships - styled as music industry investment schemes - were used for tax avoidance.

Icebreaker Management said it was considering the ruling and whether to appeal, but HMRC said: "We will not tolerate abuse of the system by people trying to dodge their tax obligations."

Read: Take That stars 'face multi-million pound tax bill'

Take That's Gary Barlow, Howard Donald and Mark Owen have today refused to comment on reports that they face having to pay tens of millions of pounds in tax after a court ruling.

The three band members invested at least £26 million into two-partnerships styled as music-industry investment schemes, The Times reported, but yesterday Judge Colin Bishopp ruled that 51 partnerships set up by Icebreaker Management were used for tax avoidance purposes.

In his ruling, the judge said: "The Icebreaker scheme is, and was known and understood by all concerned to be, a tax avoidance scheme."

Take That's lawyers insisted the bandmates believed the investments, which were made in 2012, were legitimate enterprises and that all four named paid "significant tax", according to reports.

There has been no suggestion that fellow Take That bandmates Jason Orange and Robbie Williams were involved in the scheme.

A spokesman for Take That said today there was no comment from Barlow, Donald or Owen.