The incoming chair of Britain’s Financial Conduct Authority has admitted an ‘error of judgement’ after investing in a tax avoidance vehicle.
Charles Randell is appearing before the Treasury Committee right now, and revealed that he made a mistake by putting money into the Ingenious Film Partners 2 scheme.
Ingenious Film Partners 2 was a film production partnership which proved popular with many celebrities and sports stars, such as David Beckham and Wayne Rooney. It used tax breaks designed to encourage films to be made in the UK. Those who put money into the scheme could claim tax relief against film production losses.
Randell has admitted that he failed to sufficiently investigate the situation, when he was told by his financial advisor that HMRC had said the scheme was acceptable. He invested in the scheme between 2006 and 2011.
He told the committee that it was an “error of judgement” not to investigate these assurances.