Ordinary investors who entered into tax avoidance schemes on the advice of their bank or financial advisor could have a route for recourse, according to a leading consumer lawyer.
Earlier this month, HMRC published a list of 1,200 tax avoidance schemes, many of which have been used by high-earning celebrities and sports stars. From August, thousands of people who used any of these schemes will receive letters from HMRC demanding payment of the tax. But as a leading consumer rights lawyer points out, it’s not just the rich and famous that will be affected by these demands.
Liam Waine, a partner at Stephensons Solicitors LLP, said: “It has become quite common to hear news reports about celebrities being caught out by the taxman. But many other people – ordinary investors – were also advised to enter into these schemes by their bank or independent financial advisor.
“This crackdown by HMRC will affect people such as nurses, office workers and vicars, as well as self-employed contractors, who simply wanted to mitigate their tax bills legitimately, but unfortunately this may now have gone wrong. The demand by HMRC to repay the tax within 90 days of receiving an accelerated payment notice could leave many people in financial difficultly.”
For those who receive a demand, they may have some recourse after paying HMRC.
Liam Waine adds: “HMRC will need to be paid the tax owed as this would be money that would have been owed had they not entered into the scheme in the first place. However, it is possible that some people who were given bad advice may subsequently have a valid legal claim against those advisors.
“If successful, the original investment plus interest and costs could be recouped. However, sophisticated investors may struggle more in doing this as it could be harder to show that they were mis-sold the investment.”
The list of Reviewed Tax Avoidance Scheme Reference Numbers can be found here
Stephensons’ Consumer team can assist those who may have been mis-sold an investment by a bank or financial adviser. Contact Stephensons on 0333 344 4772.
ENDS
About Stephensons
- Stephensons is an award-winning top 150 law firm, with a turnover of £18million and 420 staff based in ten offices across the country.
- Stephensons is a multi-service firm providing legal services to individuals, businesses and government organisations.
Media information: Lianne Tracey and Chloe Kendall
Stephensons Solicitors LLP
Tel: 01616 966 229
Email: lct@stephensons.co.uk or cke@stephensons.co.uk