Deadline looms over film investment schemes accused by HMRC of being tax avoidance vehicles
Investment scheme: Former footballer David Beckham
Members of film investment schemes accused by HM Revenue & Customs of being tax avoidance vehicles have been told to accept an offer to settle this month.
Wealthy investors, including David Beckham and MP Andrew Mitchell, poured billions of pounds into Ingenious Media’s film production schemes, enabling them to defer paying tax for years.
The Revenue accuses Ingenious’s schemes, founded by financier Patrick McKenna, of being concerned with tax avoidance rather than film production.
Ingenious denies this and said the schemes were always run on a legitimate commercial basis to make profitable films.
The two sides face each other in court at a tribunal on November 3.
The Revenue made an offer to investors last year to settle their tax bills at a discount, believed to be about 40 per cent.
Now it has written to say the offer will be withdrawn on October 31, ahead of the tribunal, which will decide if the schemes are legitimate or not.
Members must decide if they would be better off paying the tax that the Revenue says is due or gambling that Ingenious will win its case.
If it loses, its members would face much higher tax bills.
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