Families facing ruin over tax avoidance schemes
The Sunday Telegraph says HMRC’s pursuit of investors in tax avoidance schemes in the early 2000s has left some families facing financial ruin. Thousands of people who used what were widely regarded as legal schemes - which typically involved setting up a company and drawing income in the form of loans, with repayment dates that would roll over - have now received demands for huge sums. The paper highlights the case of one family who need to find £300,000 within months - something that is likely to force the sale of their family home. As well as the loan scheme, HMRC has stepped up its pursuit of investors in tax-avoiding film schemes. The incoming chairman of the Financial Conduct Authority, Charles Randell, was amongst those forced to pay back tax, it emerged last week. Although Mr Randell was quick to blame himself, others in similar circumstances feel they fell prey to poor advice from experts. Matthew Sharp, of solicitors Wright Hassall, says anyone who began using such strategies in the past 15 years could have a case against their adviser for negligence if they were not warned of the chance of a challenge from HMRC.
Source: The Sunday Telegraph (25/02/2018)