Bear Grylls, the TV adventurer and Chief Scout, David Harding, one of the City of London’s highest earners, and Stephen and Julie Pankhurst, the co-founders of website Friends Reunited, are among 129 people who invested in 18 shipwreck salvage companies offering tax breaks now under investigation by HMRC.
Section 131 of the Income Tax Act 2007 was designed to encourage investment in high-risk companies. It allows investors to claim tax relief on losses. So if a higher-rate tax payer lost £30,000 in a year on the investment, they could claim tax relief on that amount.