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Celebrities lose £700m film partnership case

HMRC has ruled that reliefs given to 1,400 investors were “not allowable deductions”

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Celebrities including David Beckham, Wayne Rooney and Bob Geldof have lost a legal challenge to overturn a tax bill totalling £700m related to investments in film partnership schemes.

The BBC reports around 1,400 people invested in the Ingenious film partnership schemes, which helped produce films such as Avatar.

HMRC argued Ingenious claimed tax relief on artificial losses from making its films, with the schemes instead designed to avoid tax.

Earlier this week a tax tribunal upheld a decision last year to recoup the tax, saying the reliefs were “not allowable deductions”.

HMRC loses Supreme Court appeal on film partnership press briefing

The total bill is made up of £420m in avoided tax plus interest.

An HMRC spokesperson says: “We are pleased that the tribunal has agreed with us that the vast majority of what was claimed in tax relief by Ingenious investors was simply not due.”

Ingenious plans to appeal the ruling. A spokesman says: “It is wholly unsatisfactory that the tribunal reached this decision with ‘misgivings and reluctance’.”

Ingenious and HMRC have been engaged in bitter legal battles for months. Last October Ingenious won a Supreme Court appeal against HMRC, with judges ruling HMRC unlawfully disclosed confidential information in an “off the record” press briefing.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Just the tip of an enormous iceberg!

  2. take the high road road 2nd June 2017 at 1:00 pm

    I hope the advisers who recommended these schemes have a watertight ‘suitability’ report as you can guess what will happen next..

  3. Neil Liversidge 2nd June 2017 at 1:43 pm

    Yet another disaster we warned potential investors against when they sought our opinion. Another big bullet dodged, to add to Keydata, Arch Cru, Connaught, Stirling Mortimer et al!

  4. Duncan Gafney 5th June 2017 at 7:51 am

    Must admit I find it funny that Bob Geldof is one of these, given all his preaching and BS about how wonderful and enlightened he is…. hypocrisy much?

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