A tax avoidance scheme sold by NT Advisors has lost its battle against HM Revenue & Customs (HMRC) in the Court of Appeal, bringing in £100 million in taxes.
In 2006, NT Advisors adviser Matthew Jenner devised the scheme, branded Project Corbiere, for the firm and pitched it to wealthy individuals.
The scheme involved transferring millions of pounds of gilts, backwards and forwards to the British Virgin Islands to manufacture an unwarranted tax deduction of £1.2 million.
The Court of Appeal said the scheme was specifically designed to avoid tax.
Some of the 230 wealthy individuals who first used the scheme in 2005 have settled their tax bills with HMRC but an extra £80 million could have been lost to the UK if this latest appeal had been successful.
The First-tier and Upper Tribunals and the Court of Appeal have all now ruled in HMRC’s favour.
Exchequer secretary to the Treasury David Gauke said: 'This is an important win for HMRC and is the latest in a string of successes. It is excellent news for the vast majority of taxpayers who play by the rules.’