Tax unit to investigate celebrity magazine deals

A special celebrity tax unit has been created in Britain to investigate deals between stars and publishers.

The Inland Revenue investigation will look at magazines such as Hello! and OK which have bought exclusive rights for the coverage of celebrity weddings and holidays.

A team of six inspectors based in London is aiming to find out whether payments were made in cash or "in kind".

Posh Spice and David Beckham made an estimated £1.2 million for letting OK have the rights for their wedding.

Tax expert Maurice Fitzpatrick, chief economist at City firm Chantrey Vellacott, says: "The Inland Revenue would argue the income is part of their carrying on the trade of being a celebrity and earning from it".