Invicta Film Partnership No. 43 has collapsed according to filings at Companies House.
“Upon dissolution all property and rights vested in, or held in trust for, the LLP are deemed to be bona vacantia, and accordingly will belong to the crown,” the notice reads.
The controversial tax shelter purchased film rights and generated paper losses, which could be used to offset their clients’ other earnings and reduce their tax exposure.
According to the The Mirror, Wayne Rooney used his own money and money lent by the Bank of Scotland totalling £12.5m ($16.5m, €14m) to maximise the tax benefit across his earnings.
Miles Dean, managing partner of Milestone International Tax, said: “As the old saying goes, ‘A fool and his money are soon parted.’
“It’s very likely that Wayne Rooney didn’t know what he was signing off, other than it was something to do with a tax saving as opposed to making a legitimate investment in pursuit of an economic benefit.
“He probably wasn’t made aware of the risks attached to the scheme or the likelihood of an HMRC enquiry, and his advisers probably received a significant non-refundable commission on his entering into the scheme.
“While Mr Rooney is right to be furious, the rich and famous can’t continue to bleat and not take responsibility for their actions, unless they’ve given carte blanche to their advisers. If something seems too good to be true, it probably is.”
Similar schemes have come under considerable pressure from HM Revenue and Customs over their affairs. One, the Ingenious Film scheme is resisting, claiming it is a perfectly legal way of investing in film.
Rooney is not alone in being attracted to investing in film because of its tax benefit, however, while it is not known what Rooney’s final bill will be, it has been calculated the liabilities attached to some of the film rights can exceed the original rights purchase.
