- Some 81 celebrities and sports stars tried to appeal the loss of a tax break
- The celebrities paid at least £100k each into a film investment company
- HMRC investigated the firm and found it did not qualify for the tax breaks
Football stars David Beckham and Gary Lineker face paying a share of a £480 million tax bill after losing an appeal against a decision by HMRC to reject their claim for relief over investments in the film industry.
The pair were among 81 celebrities and high profile sports stars who had invested in film-funding schemes which pumped money into hit movies such as Avatar.
HMRC began investigating the firm, Ingenious, which was behind the scheme.
Former England striker Gary Lineker, pictured, was one of the celebrities who paid in a minimum of £100,000 into a film investment company which was investigated by HMRC
David Beckham, pictured, also paid into the company called Ingenious
In a long-running legal battle, the stars, who include Wayne Rooney, Steven Gerard, Ant and Dec, Geri Horner and Davina McCall, have claimed they did not intend to avoid paying tax on their investments.
The Ingenious Film Partners 2 LLP scheme qualified for tax breaks under rules designed to stimulate the British film industry, with hit movies such as Life of Pi, Avatar and Girl With a Pearl Earring qualifying for tax relief.
But HMRC argued such schemes were not legitimate investment opportunities but actually a means of avoiding tax, and a tax tribunal has now ruled the incentives were ‘not allowable deductions’, upholding a previous decision in 2016.
According to the Sun, the stars have lost the latest part of their legal battle at the Court of Appeal.
Each of the stars had to commit a minimum of £100,000 to the investment scheme which is designed to stimulate the British film industry.