Group litigation specialists LML have been appointed by international law firm Withers on what is sure to be a high profile group action focused on HMRC’s clampdown on tax schemes involving sports professionals, music industry figures and actors.
Many well-known UK individuals have been issued with Accelerated Payment Notices (APN’s) by HMRC which relate to tax schemes which they have invested in under the criteria of being ‘Sophisticated Investors’, as defined by the Financial Services & Markets Act 2000. In some cases they face liabilities in the millions, with many of those affected facing bankruptcy.
In total over 33,000 APNs have been issued to individuals and fall due in April 2016. In addition, a Judicial Review last year upheld HMRC’s right to collect the liabilities first and negotiate any deductions later.
Roberto Moruzzi, Litigation Partner at Withers, explained: “We look forward to working with LML to grow the group and seek financial recourse from the advisers involved. It is our belief that many of the investors, particularly the many professional sportsmen and women who signed up for these schemes, have a clear case to make against the professional indemnity policies of their accountants or IFAs.”
Ben Hawkins, Managing Director at LML, said: “This is a very serious issue indeed for those affected. The team at Withers have a very strong case and we believe teaming up as a group will firmly place the blame where it really belongs and enable HMRC to recover the tax it’s owed.”