Q&A: Upham and others v HSBC

The case of Upham and others v HSBC UK Bank plc [2024] EWHC 849 (Comm) concerns claims brought by investors in the Eclipse film partnerships against a bank that was closely involved in structuring and marketing the scheme.

What was the nature of the investors’ claim?

The investors were seeking to recover losses suffered following HMRC’s successful challenge to the scheme which included the tribunal and court decisions in the Eclipse 35 tax appeals that the film partnership in that case was not trading for tax purposes.

The investors claimed that the bank and Future Films which was the promoter of the scheme and an adviser to the film partnerships made false representations to investors which the bank either knew to be incorrect or should have checked and that these representations were made dishonestly. The investors claimed that the bank should be held liable for...