Regulation  

Supreme Court rejects final celeb tax avoidance appeal

However Mr Avient said the Supreme Court ruling may not be the end of the saga.

“Attempts are being made to re-characterise the arrangements of other LLP’s in the Eclipse series of LLPs but with such a strong precedent from the courts it is difficult to see why HMRC would allow such attempts,” he said.

“It is therefore likely that HMRC will start the process of seeking collection and issuing follower notices. Participants in other Eclipse partnerships will therefore need to decide whether they seek to pursue other basis of challenge, and suffer potential penalties or seek settlement.

“For those in other structures where the question of trading is raised, the issue is now clear. If they are unable to win the trading argument at the tribunal stage not only will a successful appeal be unlikely, they may not even receive permission to appeal.”

Victor Sacks, adviser at Cambridgeshire-absed Ringrose Grimsley, said: “My perspective is any scheme trying to circumvent standard rules is clearly up for scrutiny. We’ve seen it time & time again.

“One would hope those clients who were encouraged to invest were made fully aware of the type of scheme being recommended and the possibility of it being scrutinised by HMRC.

“In my mind, the company recommending such action, should be liable for the penalty and not the FSCS which could force another raise on an already expensive levy.”

laura.miller@ft.com