The Eclipse Film Partners (numbers 1 to 40) Limited Liability Partnerships (Eclipse LLPs) were complex financial arrangements and a form of tax avoidance. Through their “investment”, taxpayers aimed to generate large interest payments on bank borrowings, presented as contributions to the capital of the Eclipse Film Partnership, so they could buy film rights. HMRC did not accept the borrowings for the “investment” were real.
Being challenged by HMRC can be a major distraction to any taxpayer. It can impact on life both at work and at home. It is therefore often uppermost in any taxpayer’s mind to seek a Settlement as soon as possible. Then they can get on with their lives.