Top UK cricketers caught up in film scheme losses
Several former England cricket captains have been caught up investing in disputed film schemes that have also seen many high-profile footballers lose millions.
The Sunday Times reported over the weekend that it had seen documents showing that Michael Vaughan, Andrew Flintoff and Marcus Trescothick were among the cricketers who had invested more than £3m in film schemes that have since been challenged by HM Revenue & Customs.
It said other England cricketers facing big tax bills were Alec Stewart, Paul Collingwood and Mark Butcher and retired fast bowler Matthew Hoggard.
It said all the cricketers invested in film schemes partnerships promoted by the Ingenious group.
Legal battle
Hundreds of investors in the Ingenious group schemes are pursuing a legal battle after the film production initiative they invested in was accused of being a tax avoidance scheme.
Earlier this month the UK Court of Appeal granted the investors in Ingenious Media Film partnership schemes the right to appeal a High Court decision in July which dismissed their judicial review challenge against HMRC issuing them with Partner Payment Notices (PPNs).
PPNs can be issued where schemes demonstrate certain ‘avoidance hallmarks’; such as the scheme being subject to disclosure requirements under the Disclosure of Tax Avoidance Schemes (DOTAS) rules.
Pinsent Masons, the international law firm, which is acting on the appeal, said that over 80 claimants will be involved in the appeal, with the hearing expected to take place towards the end of 2016.
PPN threat
Steven Porter, senior associate at Pinsent Masons said the appeal court decision highlighted the importance of the issues to be considered.
“The judgement in July did not, in our view, address some of the serious issues which use of PPNs in relation to these schemes poses. In many cases, HMRC checked and repaid the tax in question over 10 years ago – and is now trying to claw it back using new legislation.
“Taxpayers are being faced with notices demanding the upfront payment of millions of pounds, prior to any formal decision by the courts or Tribunals. HMRC is moving much more quickly and aggressively than ever before. It is important that the new powers face proper scrutiny,” he said.
The disclosure of the cricketers caught up in the Ingenious schemes follows a report, also in the Sunday Times, last month that England and Premier League football stars such as Rio Ferdinand, Andy Cole, and Danny Murphy were among those caught up in a similar film and property schemes run by firm Kingsbridge Asset Management.
