HMRC is holding on to millions of pounds in overpaid tax that it should be repaying to members of Eclipse Film Partnership schemes, a City law firm has claimed.

In November 2019, the Court of Appeal ordered HMRC to withdraw Follower Notices and Accelerated Payment Notices requiring participants in a film investment scheme to immediately pay disputed tax plus interest to HMRC, on the basis that they were issued unlawfully.

HMRC reversed the Advance Payment Notices for the partnership in that case.

However, although a large number of other taxpayers participated in the same or similar schemes, entitling them to ...