Billionaire trader Alex Gerko has accused HM Revenue and Customs (HMRC) of gloating after the tax authority defeated him in a legal dispute over tax avoidance. The case, which reached the Supreme Court, centred on the tax treatment of profits from a currency-trading fund operated by Mr Gerko.
Court Ruling and HMRC Response
The Supreme Court ruled on Wednesday that the fund, HFFX, should have paid income tax at a rate of 45 per cent rather than corporation tax at up to 24 per cent. This decision leaves traders who benefited from the scheme with a combined tax bill of £22.5 million. Following the ruling, an HMRC spokesperson stated: “We welcome the decision, which confirms our position that the arrangements discussed in the ruling are ineffective. We are committed to pursuing those who avoid paying their fair share of tax.”
Gerko's Reaction
Mr Gerko responded to the HMRC statement on LinkedIn, writing: “Pretty astonishing from HMRC to get 70pc effective tax rate and also gloat about it.” The Russian-born trader, who renounced his Russian citizenship in 2022, has gained a cult following in the City for his blunt commentary on the platform. In February, he wrote: “Living in [the] UK [the] last 2.5 years is a radicalising experience.”
Background of the Case
The dispute involved HFFX, a fund set up by Mr Gerko while he worked at trading firm GSA Capital. The fund was designed to pay a share of GSA Capital’s profits to a group of traders, including Mr Gerko. It was structured to incur corporation tax at a lower rate, but HMRC challenged this arrangement, arguing it was a form of tax avoidance.
Philanthropic Efforts
Despite the tax battle, Mr Gerko’s company, XTX Markets, is one of the UK’s largest charitable donors. In 2025, the firm committed more than £150 million to charities and good causes. This philanthropic work contrasts with the ongoing legal dispute over tax liabilities.
