By Jonathan Davies

Next has been handed a £22 million bill after a court found it guilty of moving profits offshore to avoid paying tax.

Next is found to have used a tax avoidance scheme called 'rate-booster'. Profits were diverted to foreign subsidiaries to claim tax relief on overseas profits. The subsidiaries then paid back to the parent company.

Businesses are eligible for tax relief on profits made overseas to ensure they are not 'double taxed'.

Next is the second business to be found guilty of using a rate-booster scheme. In 2013, the case against P&O Ferries reached court - although the company is appealing the decision.

HMRC said £130m through 20 other cases was riding on the outcome of the Next and P&O cases.

HMRC's director general of business tax, Jim Harra, said: "This case shows how HMRC takes effective action against big businesses that try to avoid paying tax through convoluted, artificial avoidance schemes. HMRC expects all businesses to steer well clear of such schemes."

Next said it paid what was owed "some years ago".