Tim Healy has lost the latest round of a fight with the taxman over a London flat he rented while appearing in Billy Elliot The Musical.

The 63-year-old actor, who comes from Newcastle upon Tyne, said he should not have to pay income tax on money he spent on accommodation while appearing at the Victoria Palace Theatre in London ten years ago. He said money spent on accommodation was incurred for the “purposes of his profession”.

Sir Elton John and Tim Healy with their Billy Elliot co-stars
Sir Elton John and Tim Healy with their Billy Elliot co-stars (Steve Parsons/PA)

Officials at HM Revenue and Customs disagreed, arguing that the London flat was his “base” at the time and said he should therefore pay tax.

Specialist tax judges have analysed the issue several times. A tax tribunal initially ruled in favour of Tim, who is best known for his appearance in Auf Wiedersehen, Pet – a television comedy about British workmen abroad.

But a tax appeal tribunal then decided that the first tribunal had made a legal error and said the case should be re-examined.

Now a tribunal has ruled against the star – following a further hearing.

Tim Healy
Tim Healy (Richard Sellers/PA)

Detail of the latest stage of the fight has emerged in a written ruling following a hearing in North Shields, Tyne and Wear.

Judges heard that Tim, who was previously married to Denise Welch, had rented a flat about a mile from the theatre for a year – at a rent of nearly £900 a week.