BBC - Adam Curtis Blog: THE BITCH, THE STUD AND THE PRAWN
Interesting parallels between an east end wideboy and modern private equity.
Cronyism? Surely not?
Interesting parallels between an east end wideboy and modern private equity.
And like George Walker, Guy Hands also got involved with making movies. In 2001 he backed what seemed to be an unlikely script.
It was a film called Crust. It told the story of a pub landlord who finds a giant seven foot mutant shrimp on a beach. The landlord then decides to teach the shrimp to box - and believes this will make his fortune.
The film was made but unfortunately it was never shown - and even more strangely never even made it to video.
But then the truth came out - thanks to Gordon Brown.
Officials in the Inland Revenue had begun to notice more and more British films had actually amassed takings of less than £100. The tax men began to suspect something was up.
One possibility was that all the films were so bad that no one would release them.
In fact the reality was that for all these films it didn't matter whether they were seen in a cinema or not. Their real function was as a tax dodge for rich people. It was known as double dipping - and it allowed the investors to claim tax relief twice on their investments. And this is what Mr Hands had been doing when he put his money into the mutant shrimp film.
In 2005 Gordon Brown put a stop to it - and Guy Hands was furious. Together with 74 other investors he sued the tax advisors who had recommended he invest £11 million in a whole range of such films - another one was a comedy called Nine Dead Gay Guys (which did make it to DVD).
I'd love to know the full list of these tax-dodge British films. One estimate is that between 2003 to 2005 the tax breaks were worth £5bn in cash terms.
It was a film called Crust. It told the story of a pub landlord who finds a giant seven foot mutant shrimp on a beach. The landlord then decides to teach the shrimp to box - and believes this will make his fortune.
The film was made but unfortunately it was never shown - and even more strangely never even made it to video.
But then the truth came out - thanks to Gordon Brown.
Officials in the Inland Revenue had begun to notice more and more British films had actually amassed takings of less than £100. The tax men began to suspect something was up.
One possibility was that all the films were so bad that no one would release them.
In fact the reality was that for all these films it didn't matter whether they were seen in a cinema or not. Their real function was as a tax dodge for rich people. It was known as double dipping - and it allowed the investors to claim tax relief twice on their investments. And this is what Mr Hands had been doing when he put his money into the mutant shrimp film.
In 2005 Gordon Brown put a stop to it - and Guy Hands was furious. Together with 74 other investors he sued the tax advisors who had recommended he invest £11 million in a whole range of such films - another one was a comedy called Nine Dead Gay Guys (which did make it to DVD).
I'd love to know the full list of these tax-dodge British films. One estimate is that between 2003 to 2005 the tax breaks were worth £5bn in cash terms.
In March 2011 George Walker died. At the same time his other daughter Sarah finally found love.
...
Then, in 2010, Sarah met a city entrepreneur called Michael Spencer. Like her father, Spencer was a self-made man who had risen to become fabulously wealthy. He was a friend of David Cameron's and had become the Treasurer to the Conservative Party.
Like Guy Hands, Michael Spencer too has found an innovative way of making money out of the best intentions of the government. He is one of a select group of City brokers who make Quantitative Easing work.
Their job is to buy up bonds using government cash - taking a tidy cut for themselves for every bond purchased. At the last count the government had pumped in £275bn. Spencer has been quoted as saying "the crisis is good for business."
...
Then, in 2010, Sarah met a city entrepreneur called Michael Spencer. Like her father, Spencer was a self-made man who had risen to become fabulously wealthy. He was a friend of David Cameron's and had become the Treasurer to the Conservative Party.
Like Guy Hands, Michael Spencer too has found an innovative way of making money out of the best intentions of the government. He is one of a select group of City brokers who make Quantitative Easing work.
Their job is to buy up bonds using government cash - taking a tidy cut for themselves for every bond purchased. At the last count the government had pumped in £275bn. Spencer has been quoted as saying "the crisis is good for business."
Don't be so preposterous.
Comment