Liverpool and Leeds legend Gary McAllister, 61, 'faces financial ruin' after being hit with bankruptcy petition - with Scot involved in tax-avoidance scheme alongside fellow ex-players

Gary McAllister is facing the threat of financial ruin after being hit with a bankruptcy petition by HM Revenue and Customs.

The Liverpool and Leeds legend, 61, has been taken to court by HMRC over an unpaid tax bill, with the amount owed yet to be disclosed.

As reported by the Telegraph, McAllister is understood to have been among a number of high-profile footballers who invested in film partnerships that were subsequently ruled to be tax avoidance schemes by HMRC.

The schemes offered investors substantial tax relief by using relatively modest investments backed by significant loans.

McAllister has not been accused of deliberately evading tax. His representatives say he believed his tax adviser was handling the matter with HMRC and that he is now seeking to bring the dispute to a swift conclusion.

HMRC has spent years pursuing ex-footballers and celebrities involved in the scheme for unpaid tax.

Gary McAllister is facing the threat of financial ruin after being hit with a bankruptcy petition

A spokesman told the Telegraph: 'We take a supportive approach to dealing with customers who have tax debts and do everything we can to help those who engage with us to get out of debt, such as offering instalment plans. We only petition for bankruptcy as a last resort.'

McAllister, who is widely regarded as one of Scotland's greatest ever midfielders, enjoyed a successful career before his retirement in 2004.

He played a key role during Leeds United's title-winning campaign in 1991-92, helping the Yorkshire club win the last ever English First Division before it was rebranded to the Premier League.

After four years with Coventry City in the mid-1990s, the Scottish later joined Liverpool in 2000 and won the FA Cup, UEFA Cup and League Cup over a two-year spell at Anfield.

His career came to an end at Coventry, where he took on the role of player-manager in 2002, having made more than 150 appearances for the club across two spells.

Chalking up 57 caps over his glittering career, McAllister also captained Scotland for four years and famously missed a penalty against England during his country's 2-0 defeat at the 1996 European Championship.

McAllister is one of several former footballers facing the threat of bankruptcy.

Daily Mail Sport revealed earlier this month that HMRC had filed a petition with the High Court to have former Liverpool star Jamie Carragher declared bankrupt over an unpaid tax bill reportedly worth between £700,000 and £800,000.

The Liverpool legend is understood to have been among a number of high-profile footballers who invested in film partnerships that were later ruled to be tax avoidance schemes

Last year, it was also reported that former Liverpool defender Steve Finnan and ex-Manchester City winger Shaun Wright-Phillips were facing separate bankruptcy petitions.

David James, Wes Brown, Lee Hendrie, Trevor Sinclair and John Barnes are among the former Premier League footballers to have been declared bankrupt by HMRC since 2010.