Film rights tax shelter shut down

A tax tribunal has ruled in favour of HMRC that a tax avoidance scheme marketed by Goldcrest Pictures failed to live up to its promise and “simply didn’t work”.

The latest in a long line of artificial film investment schemes was based on buying and selling film rights, where users not only had to pay the tax owed with no relief at all for the money they put into the scheme, but also ended up losing the money they paid into Goldcrest as fees.

Goldcrest sold rights in two feature films for an inflated figure of £21.9m to Kensington-based hedge fund manager Patrick Degorce who was only required to pay £4.8m of his own money.

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