THE Supreme Court has ruled in favour of HM Revenues and Customs in their battle against Rangers.

Between 2001 and 2010 more than £47 million were paid to players, managers and directors in tax-free loans that HMRC argued should have been taxable.

While two tribunals had previously ruled in favour of Ranger the Court of Session ruled in facvour of HMRC following an appeal made in 2015.

The case, known as the "big tax case", concerned Rangers use of Employee Benefit Trusts and it is not expected that the fact Rangers is now owned by a different company will have any impact on the court's decision.

HMRC has been attempting to recoup tax from thousands of other companies that ran similar schemes and avoided paying tax, and this court ruling could set a precedent for future court cases.

They are no in a position to potentially issue "follower notices" on the companies who ran similar schemes, demanding payment.

A number of English football clubs fall into this category.

In a written judgment, the judges said:"Payment to the Principal Trust should have been subject to deduction of income tax under the PAYE regulations."

Former Rangers chairman Sir David Murray was "hugely disappointed" with the verdict.

He said: "It should be emphasised that there have been no allegations made by HMRC or any of the courts that the club was involved in tax evasion, which is a criminal offence.

"The decision will be greeted with dismay by the ordinary creditors of the club, many of which are small businesses, who will now receive a much lower distribution in the liquidation of the club, which occurred during the ownership of Craig Whyte, than may otherwise have been the case."

The result will mean creditors will receive less of the cash collected by liquidators BDO, as HMRC will now be owed even more than before.