A tax avoidance advice 'timebomb' built up over a decade could send a "significant" number of new claims to the Financial Services Compensation Scheme (FSCS) now that the body has agreed to deal with similar cases, a firm representing unhappy clients has said.
Research by claims management company Rebus on the number of avoidance scheme promoters suggested there could be up to 30,000 claims in relation to tax scheme mis-selling in the marketplace, with a total claims value in excess of £30bn. Thousands of those claims will reach the FSCS because the advice firms are no longer trading, Rebus said - however even if they are successful the redress body, paid for by advisers, will only pay up to a limit of £50,000 per claim, a fraction of the total. Rebus has 84 cases being processed by the FSCS for claims related to advice to invest in tax 'mi...
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