Hundreds of tax dodging celebrities facing ‘financial ruin’ after investing in huge film investment avoidance scheme

HUNDREDS of celebrities face financial ruin after the taxman demanded they repay up to 20 times their investments in a dodgy avoidance scheme.

Former Manchester United boss Sir Alex Ferguson and ex-England manager Sven-Goran Eriksson are among nearly 800 celebs, bankers and professionals involved.

An investor to the scheme who stumped up £200,000 is expected to be billed between £2 million and £4 million.

In total, some £2.2 billion has been poured into ‘film investments’ that allowed backers to reduce their tax bill.

The complicated process involved buying and renting back Hollywood blockbusters to film studios, which allows members to shelter billions from government.

But HMRC warned tax advisers on Wednesday that it wanted repayment – for much bigger sums than the amounts initially paid in.

Nick Wood, an adviser for hundreds of investors in the Eclipse 35 scheme, told : “I think there will be people potentially jumping off bridges.

“My expectation is, out the 780 people involved, I’d think it highly likely that up to 600-700 would go bankrupt.”

HMRC is expected to dish out the demands within two months.

Recipients will have 90 days to cough up – or risk the wrath of the law.

The situation is so severe that some high-profile names affected are considering whether tax experts can be held accountable if an investor commits suicide.

Mr Wood said: “I’m spending my days and evenings on the phone to people who are utterly distraught.”