A BENTLEY-driving businessman who had his £1.3million Bowdon mansion repossessed by the banks has been jailed for his part in a £250,000 VAT scam.

Nasir Ul Din Ahmed, 48, of Washway Road, Sale, has been sent to prison for 20 months and disqualified as company director to three companies after pleading guilty to VAT fraud.

Investigations by HM Revenue and Customs (HMRC) revealed the Ahmed and Syed Nasir Abbas, 48, of Oakfield Avenue, Whalley Range, deliberately faked VAT repayment claims between 2008 and 2011.

Ahmed was director of three Stockport-based businesses; property development companies Landmarc Properties (Manchester) Ltd (LPML) and Centurion Developments (Europe) Ltd (CDEL), and a mobile phone shop The Fone Shop Ltd. Abbas was company secretary of CDEL.

HMRC investigators discovered the pair had falsified invoices and bank statements to make the companies appear to be legitimately trading under the fraud.

During the investigation, HMRC stopped all VAT repayments to Ahmed’s three companies and he was arrested in October 2012.

Three months after his arrest, Ahmed was declared bankrupt, with liabilities totalling £1.6m. Ahmed had owned a home in Sale, business premises in Stockport, and a mansion in Bowdon valued at £1.3m. He also drove a Bentley.

The banks repossessed his mansion and Sale house in Feb 2013 and by June 2013, his assets were described as 'nil'.

HMRC investigators believe Ahmed has been living off the fraud.

Sandra Smith, Assistant Director, Fraud Investigation Service, HMRC, said: “This was a deliberate attempt to defraud the public purse by pocketing VAT repayments to buy property, personal possessions and fund their lifestyles. Our investigations unravelled the false invoice trail used to steal public funds. The sentences reflect how serious this fraud is.

“If you know of anyone who is committing tax fraud you can report them by calling our 24-hour Hotline on 0800 59 5000.”