Tax

UK Celebrities Lose Film Tax Relief Battle

Robbie Lawther Reporter London 3 January 2018

UK Celebrities Lose Film Tax Relief Battle

According to reports, the celebrities had invested in film-funding schemes with media investment firm Ingenious.

Former football stars Gary Lineker and David Beckham are among 81 celebrities who have lost a battle to claim back £480 million ($652.2 million) in taxes, according to the Sun.

The newswire said they invested in controversial film-funding schemes and went to Court of Appeal to claim tax relief after investing in movies like Avatar with the media investment firm Ingenious.

But they lost the latest round of the battle over their investments. HMRC called the schemes aggressive tax dodging.

The appeal decision will affect hundreds of stars and investors as many others are taking legal action based on the same argument as the 81 who went to the Court of Appeal.

According to the Sun, other stars believed to have used Ingenious include Wayne Rooney, Steven Gerrard, Ant and Dec, Geri Horner and Davina McCall.

The total invested by celebs is more than £1.2 billion.

The details of the scheme are:

- The Ingenious Film Partners 2 scheme qualified for tax breaks under rules designed to stimulate the British film industry. 
- Hit movies such as Life of Pi, Avatar and Girl With a Pearl Earring all benefited from tax relief. 
- The stars invested Ingenious and became directors of various partnership schemes, allowing them to claim tax relief through the films so that it reduced their own overall bills.
- They each paid a minimum £100,000 to invest in the scheme.

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