Edwin Coe LLP has filed a claim against HSBC, on behalf 371
investors, for the losses caused by its role in the conception, development,
and marketing of a series of Disney film financing schemes known as the Eclipse
Partnerships. The Claimants allege they were induced to invest on the false
promise that Eclipse represented a genuine opportunity to invest in blockbuster
Disney films.
David Greene, Senior Partner at Edwin Coe said: ‘It is now
clear Eclipse was a passive pass through model via which the rights to Disney’s
films circled back to the studio. Eclipse was a sham investment opportunity ...
At no point did Eclipse actually exploit, or otherwise trade in, any meaningful
film rights of any value from Disney.’
The claimant group is seeking some £1.3bn in loss and damages.
In Eclipse Film Partners No 35 LLP v HMRC [2015] STC
1429, the LLP contended that it had carried on the trade of acquiring and
exploiting film rights and that its members could claim tax relief for interest
incurred on loans taken out to invest in the LLP. Dismissing the claim, the
Court of Appeal held that the taxpayer had not been carrying on a trade, had
not paid for the production of the films and had not made a significant
contribution towards their exploitation (see ‘The Court of Appeal judgment in
Eclipse 35’ (Judy Harrison & Chris Bates), Tax Journal, 11 March
2015).
Edwin Coe LLP has filed a claim against HSBC, on behalf 371
investors, for the losses caused by its role in the conception, development,
and marketing of a series of Disney film financing schemes known as the Eclipse
Partnerships. The Claimants allege they were induced to invest on the false
promise that Eclipse represented a genuine opportunity to invest in blockbuster
Disney films.
David Greene, Senior Partner at Edwin Coe said: ‘It is now
clear Eclipse was a passive pass through model via which the rights to Disney’s
films circled back to the studio. Eclipse was a sham investment opportunity ...
At no point did Eclipse actually exploit, or otherwise trade in, any meaningful
film rights of any value from Disney.’
The claimant group is seeking some £1.3bn in loss and damages.
In Eclipse Film Partners No 35 LLP v HMRC [2015] STC
1429, the LLP contended that it had carried on the trade of acquiring and
exploiting film rights and that its members could claim tax relief for interest
incurred on loans taken out to invest in the LLP. Dismissing the claim, the
Court of Appeal held that the taxpayer had not been carrying on a trade, had
not paid for the production of the films and had not made a significant
contribution towards their exploitation (see ‘The Court of Appeal judgment in
Eclipse 35’ (Judy Harrison & Chris Bates), Tax Journal, 11 March
2015).
