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View the article online at http://citywire.co.uk/wealth-manager/article/a734533

Sven & Fergie face £1m film scheme bill

by Jun Merrett on Feb 17, 2014 at 14:01

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.

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