Promoters sued

The claimant was a chartered accountant and a managing director at KPMG Consulting Ltd. He joined an investment opportunity involving a film tax relief after seeing a presentation by the two defendants.

He said he had been told he could claim a refund on income tax already paid invest the proceeds in movies and recover a guaranteed return of 20% of the investment.

This happened as planned but HMRC subsequently ruled that the claimant was not entitled to the refund and demanded its repayment with interest and penalties.

The KPMG boss brought a claim for damages against the defendant in respect of alleged fraudulent misrepresentation

The High Court was satisfied the first defendant had described an arrangement in such a way that the claimant took to mean the investment scheme had been approved by the Revenue and that this was her intention.

The judge accepted...