Sven Goran-Eriksson and Alex Ferguson
Former England and Manchester United football managers Sven-Goran Eriksson and Alex Ferguson are amongst the highest profile investors in Eclipse 35, a tax scheme that was last week defeated in the Upper Tax Tribunal.
HM Revenue & Customs’ (HMRC) case against the scheme, which claimed to enable its partners to obtain tax relief on their general income, has been long-running. The taxman had won a case against Eclipse in the First Tier Tribunal in 2011, arguing the scheme did not work. After that decision was appealed, HMRC has now secured a further victory.
The judgment means anyone who used the scheme to avoid tax will now have to pay tax on income from the scheme, meaning they will be left worse off than if they had never used it.