David Beckham is among the 1,000 people who invested in Ingenious’ film financing schemes intended to secure tax relief for high earners.
He is joined by a wealth of celebrities, including Gary Lineker, Bob Geldof and Ant and Dec who invested a minimum of £100,000 to join and suffered substantial losses as a result.
The Ingenious scheme was introduced to build the UK film industry which is the fourth largest box office earner after US, Canada and China. The global film industry has an estimated value of 38 billion US dollars and is ever growing.
Therefore, the Ingenious film financing schemes were part of an effort for the UK to remain competitive globally. They incentivised big name celebrities with tax relief, who could have otherwise gone to the UK’s competitors. The decision may have been lucrative for the UK film industry, but for many it came down to a question of fairness and tax avoidance simply isnít.
Investors claimed they were unaware of the risks involved when entering the scheme. They appealed the 2016 ruling. However, HMRC suggested that the Ingenious scheme made claims based on artificial losses and upheld the 2016 ruling that lead to losses of £420 million, which including interest, rose to £700.