Tax
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.