VCT provider Ingenious Media has been warned by HM Revenue & Customs that it believes its film scheme investments are designed to avoid tax, reports the Mail on Sunday.
The paper reports HMRC has concerns about six schemes which are part of the firm’s Inside Track and Ingenious Film Partnership plans with a tax tribunal set to hear the case next year. The paper says up to £8bn is tied up in the film schemes.
The Mail on Sunday reports the firm has a number of celebrity clients with investments of between £160,000 and £60m.
Ingenious Media Investments chief executive James Clayton told the paper: ‘We welcome the opportunity this gives us to finally bring the matter before the tribunal where we will have our case heard by an independent assessor.’
Earlier this year, HMRC won a court victory over a film investment scheme’s proposed use of tax relief. Eclipse 35 had 289 investors who were looking to take advantage of a collective £117m tax relief on a £1bn investment arrangement with Disney.
HMRC argued the scheme was no more than a way of offering investors a large amount of tax relief rather than carrying out any trading or group business.
In June, Money Marketing reported investors in film partnership schemes were preparing negligence claims against at least 45 IFAs ahead of possible tax demands and penalties being issued by HMRC.