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And that is very bad news for hedge fund manager Hugh Sloane, who was really counting on either making money on his £2.5 million investment in the aforementioned film scheme, or at the very least writing the whole thing off come tax time. Now, it is also bad news for Saffery Champness, who (allegedly) told Sloane that everything would work out fine.
Sloane, who has invested in film companies in the past, says in a court document that he was told by Gilbert Holbourn, a partner at Saffery Champness at the time, that the Zeus Scheme represented a high risk but genuine commercial investment that would qualify for tax relief in the event of any losses.
According to the filing, Sloane was informed less than a year later in January 2009 that his investment was of “negligible value”.
Attempts to claim loss relief, however, were quickly rejected by Her Majesty’s Revenue and Customs, the British tax authorities, which instead instructed its Special Investigations unit to launch an inquiry into Zeus Scheme and Sloane’s tax return, according to the filing….
According to the filing, Holbourn ignored advice from a fellow partner at Saffery Champness that the scheme was “frankly suspicious”. Her Majesty’s Revenue and Customs said it does not comment on specific investigations.
Separately, Sloane claims Saffery Champness failed to disclose a six-figure commission it took from the investment.
Hedge fund manager sues tax advisers over soured film bet [Financial News]