Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Sven & Fergie face £1m film scheme bill

Sven & Fergie face £1m film scheme bill

Former football managers Alex Ferguson and Sven-Goran Eriksson are among around 300 investors who face paying about £1 million in tax bills, up to seven times more than their original investment, over a failed film scheme, according to reports.

Eclipse 35 was a limited liability partnership promoted by Future Capital Partners which claimed to enable its partners to obtain tax relief on their general income.

HM Revenue and Customs (HMRC) won a case against the scheme in the First Tier Tribunal claiming the tax reliefs did not work in April 2013.

Although the scheme appealed that decision, this was rejected in the Upper Tribunal in December 2013.

The 289 investors in Eclipse 35 are now being hit with tax bills that could be over seven times greater than their initial investment, with the average loss at £1 million according to the Sunday Times.

According to the Financial Times investors in the scheme put their own money into the scheme and also borrowed loans from Barclays.

The investors had hoped that Barclays would agree to a restructure, following the failed appeal, but according to the Sunday Times, the bank has so far refused.

The paper quoted claims firm Rebus Investment Solutions, which estimated investors losses could be around seven times their initial outlay. The firm said an average member who put in £173,000, would face a possible total cost of £1.3 million in tax and interest.

Ferguson (pictured) and Eriksson are not the only celebrities to fall foul of the taxman, click here to see more.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Play Dangerous daisy chains, Black Friday blues and Uber valuations

Dangerous daisy chains, Black Friday blues and Uber valuations

This week’s Investment Pulse looks at the domino effect in European banks, America’s disappointing Black Friday and how much Uber is really worth.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter