Film partnership investors face hefty tax bill

Investors including Sir Alex Ferguson, Sven-Göran Eriksson and a host of sports stars and City figures could be liable for huge individual tax bills after an attempt to reduce their liabilities backfired.

The 289 investors in Eclipse 35, a film partnership ruled to be an “aggressive” tax avoidance scheme by a tax tribunal in April, could end up paying several times more than the total of £117m tax they sought to avoid as the Revenue examines the large bank loans they took on to participate in the scheme, the Financial Times reported.

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Comments

Somewhat premature?    1 thanks

VIOLA26 | | Permalink

I understand that the FTT decision in Eclipse 35 is to be appealed so the final outcome is yet to be decided until the case has run its course through the Courts.  It is unsurprising (and it had a feeling of inevitability) that the FTT reached the decision it did as HMRC seem to have a disproportionate number of victories at the FTT compared to its success in the Higher Courts.   

The opening to the above article, and indeed the reporting in the FT at the time, referred to wealthy investors.  I am wondering which is the bigger crime - investing in something that might produce a tax break or being wealthy!  Why not just say 'investors' rather than 'wealthy investors' - it goes without saying that those who invest in these types of products are wealthy.

 

KH's picture

VIOLA26 ... good comment    2 thanks

KH | | Permalink

It's rather like news reporting in general. You always hear that it was a prostitute which was murdered, rather than a woman/girl, as though in some way it's perfectly acceptable for prostitutes to get butchered. I don't mind the news people doing that, as long as they also say, it was an accountant-banker-butcher-baker-politician who was murdered, but this evening-up rarely happens, unless of course you happen to now be a lacklustre banker

John Stokdyk's picture

We have altered the introduction to reflect the comment above

John Stokdyk | | Permalink

It's a fair cop. We should have spotted the unnecessary adjectives when posting this article, and removed them as redundant/irrelevant.

Thanks for keeping us on our toes and we'll pay more attention to keeping our coverage more balanced in future.