HMRC targets 200 investors in Isle of Man tax scheme

HM Revenue & Customs (HMRC) has warned investors in an Isle of Man tax scheme they are being investigated, according to the Financial Times.

It said HMRC had sent letters to a number of clients of Montpelier Tax Consultants, which runs the scheme.

The scheme involves contracts for difference and attracted around 200 investors in 2004/5. In a previous court case related to Montpelier, HMRC said the scheme was one of four provided by the firm that was under investigation.

HMRC told the FT it could not comment on individual cases but confirmed its criminal investigations team had written to ‘a number of subscribers involved in a tax avoidance scheme’.

Mark Spragg of Keystone Law, the law firm acting for Monteplier, told the paper: ‘The Revenue has acted quite outrageously. It has failed to engage with us over the alleged illegality of the scheme and is now accusing the subscribers of illegality which is quite absurd.’

‘Montpelier believes the scheme technically works. It was conducted in accordance with the rules and had the blessing of several barristers.’