There are now more than 1,000 tax relief schemes. Give us a break
Every government promises to simplify taxes. None succeeds. We need more scrutiny of schemes that are too easy to set up, and too difficult to take away
Twenty years have passed since former chancellor of the exchequer Gordon Brown launched his scheme to promote the British film industry, and in doing so innocently spawned numerous lucrative tax relief opportunities for advisers and their investors.
The scheme, which allowed investors to claim back 40% of a film company’s losses against their own tax bills, ended up meaning that many investors were able to claim around £40,000 tax relief for every £20,000 they put into a production. Brown clamped down on this “double dipping” – effectively claiming tax relief twice on the same production – in 2004, after it became clear it was being abused.Continue reading...