Future Capital Partners, a promoter of tax avoidance schemes, will not issue any new product offerings following a crackdown on such schemes by HMRC.
In an email to investors sent out yesterday, seen by Money Marketing, the firm says “unprecedented” moves by HMRC to tackle marketed tax avoidance schemes over the past year have had a “significant impact” on FCP and the products it offers.
FCP director Tim Levy says in the email: “As a consequence, I have made the decision that FCP will not issue any new product offerings from 6 April. FCP’s focus will now be on the management and maximisation of value from its existing portfolio of investments.”
He says that as a result, FCP’s sales and structuring teams will be disbanded with effect from 30 April.
FCP declined to comment.
FCP promoted a film investment scheme called Eclipse 35, which had 289 investors who were looking to take advantage of a collective £117m tax relief on a £1bn investment arrangement with Disney.
HMRC won a court victory over the scheme’s proposed use of tax relief in April 2012.
In last month’s Budget, the Government confirmed HMRC will be given extended powers which will allow it to issue payment notices to anyone who has used a tax avoidance scheme into which it currently has an open inquiry.
It means HMRC is set to issue payment notices worth £7.1bn to tens of thousands of people.