So, investors put money into a scheme that was supposed to have tax advantages, but it turns out it didn't. Is this the beginning of the end of tax-led investment? Investors won't want the risk of losing out on the tax breaks, while providers won't want the risk of guaranteeing them. And of course the tax incentives were there because the Government saw this investment as a good thing.
Investors in film schemes that HMRC has branded as tax avoidance are suing a company that offered them and leading banks for more than £100m of losses. The law suit against Ingenious Media, which has financed many films including box office hits such as Avatar, and banks UBS and Coutts is the latest development in a long-running tax dispute that has left hundreds of investors, including celebrities, sporting stars and city figures with tax bills of about £1bn in total.