HMRC launches criminal probe into start-up tax relief scheme

Investors who claimed tax relief on shares in failed start-up companies face a criminal probe by HM Revenue & Customs (HMRC) into their investments amid a crackdown on aggressive tax planning.

The plans came to light when HMRC wrote to clients of tax and wealth management company BlackStar, informing them that a criminal investigation was under way into their claims for tax relief, according to a report in the Financial Times. The letter said the move was connected to "arrangements relating to the subscription of shares, together with claims that the shares became of negligible value, leading to your claim for tax relief". Suspected offences include conspiracy to cheat the public revenue and offences contrary to the Fraud Act, HMRC said in its letter in March. The invest...