Clients of Wenham Major are expected to ask for their money back after it emerged that £10.3m paid into the collapsed firm’s accounts in fees was used to settle debts owed to HBOS, the firm’s bankers.

According to the creditors’ report, the money was drawn upon by HBOS because it had cross guarantees from Wenham Major which gave it the right to set debts against deposits by other parts of the business.

The clients, 40 to 50 wealthy individuals, are expected to claim they are owed the money because they paid up front for involvement in a sideways loss relief scheme that did not go ahead. Loopholes that allowed the scheme were closed by measures in the Budget this year.

Administrators from Vantis are still investigating Wenham Major offices in Dubai and Pakistan to see if there are funds that can be drawn upon there but the creditors’ report says they do not expect to realise any money for paying out to unsecured creditors.

PricewaterhouseCoopers and Kevin Prosser, a top QC at Pump Court Tax Chambers, are among the many creditors.

Wenham Major went into administration at the beginning of May with most of the firm being taken over by RSM Bentley Jennison for £112,000.