Labour’s Lord Owen own goal over tax avoidance as he is ordered to repay £50,000 after investigation by HMRC

Former Labour Foreign Secretary took part in large tax avoidance scheme

David Owen was ordered to repay around £50,000 following investigation

The 76-year-old former politician is a long-term donor to the Labour party

David Miliband has in the past taunted the Tories over ‘dodgy donors’

Former Labour Foreign Secretary and party donor David Owen has been exposed as having invested in a tax avoidance scheme – in a major embarrassment for Ed Miliband.

Lord Owen has been ordered to repay around £50,000 after an investigation by the tax authorities. He is a supporter of Mr Miliband and last year he gave £7,500 to the Labour party.

HMRC investigators will this month insist the 76-year-old settles within 90 days or face legal action.

In 2010, he ploughed almost £70,000 into a business partnership called the Cumberland House BPRA Property Fund.

Investment advisers Downing claimed it offered ‘attractive taxation incentives’ under the Business Premises Renovation Allowance.

One expert estimated that Lord Owen’s original sum would have ‘grossed up’ to around £130,000 – leaving him with an avoidance bill of ‘between £50k and £60k’.

Lord Owen said: ‘My accountants are instructed to be completely open with HMRC and to pay what is due.’

Last night, the Labour party did not respond to our requests for a comment.