City success story avoids massive income tax bill

Philippa D’Arcy, née Rose, set up recruitment firm The Rose Partnership in
1981, and has featured in lists of successful and rich female achievers in the

The scheme, which would now be illegal, involved the purchase and subsequent
sale of gilts, claiming an expense on the purchase and creating relief on the
gains. The scheme was put in place in 2002 by D’Arcy’s tax adviser Philip
Shirley and brokers NCL Investments.

Tax experts suggested a claimed £1.5m loss in her tax return would shelter
£600,000 in tax demands.

The arrangements emerged after D’Arcy won a tribunal against HM Revenue
& Customs over the scheme. A spokesman for HMRC said the scheme had been
rendered ineffective by changes to tax rules in the 2002 Finance Act, and said
the taxman was considering whether or not to appeal in the case.

D’Arcy declined to comment.

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