Regulation  

Advisers taken to court over Ingenious investments

Advisers taken to court over Ingenious investments

A group of 122 people have started legal proceedings against their advisers and Ingenious Media over losses they incurred as a result of investing in film tax schemes.

Claims are being brought against professional agents and financial advisers who sold, recommended or marketed the investments, as well as certain banks who financed them.

The investors claim these schemes were “mis-sold” and as a result of these investments, which took place between 2000 and 2013, and they now face a significant tax liability.

But law firm Peters & Peters, which is acting on behalf of the group, has also commenced legal proceedings against the Ingenious Group of companies and three of their directors, including founder Patrick McKenna.

Jonathan Tickner, a partner at Peters & Peters, said some of his clients include former premiership footballers.

He said: “Investors have all suffered significant financial losses as a result of these schemes being mis-sold to them as legitimate opportunities in which to invest in film or other media businesses.

“They were misinformed that the tax reliefs had been approved by HM Revenue & Customs and were permitted by law.

“This is particularly hard for sporting professionals whose earning potential is at its peak for only a few years. A number of those affected are now facing bankruptcy.”

It is understood the case management conference will take place in either October or November.

In June a group of 1,400 people, understood to include footballers Wayne Rooney and David Beckham as well as Ant & Dec, lost a legal bid to overturn a £700m tax bill after investing in schemes promoted and sold by Ingenious.

HM Revenue & Customs said Ingenious had claimed relief on artificial losses, which meant it was not a legitimate investment.

A spokesman for Ingenious said: "These claims are without merit and will be vigorously defended."

damian.fantato@ft.com