Film Producer Faces Scrutiny Over Use Of UK Taxpayer Funds By HMRC And BFI

HM Revenue & Customs and liquidators are pursuing businesses behind twenty one films that sought almost £16 million in UK creative industry incentives, as questions mount over the use of taxpayer funding through the British Film Institute (BFI) film tax relief scheme. Among those under investigation is Alan Latham, a prolific film producer and accountant, whose companies controlled the production of films starring high-profile actors such as Elizabeth Hurley, Kelsey Grammer, and Bill Nighy.

Highfield Grange Production Services, ultimately owned by Latham, came under scrutiny after £20.4 million of film investments were declared worthless, depriving creditors including HMRC of recovery. The company entered liquidation following action from HMRC, which is also seeking to wind up GSP Studios International, the Latham-controlled main shareholder. An analysis has revealed that at least twenty one films linked to these entities applied for nearly £16 million in creative tax incentives intended to support the British film sector.

These productions, despite their star-studded casts, largely escaped both critical and audience attention, and reported little to no box-office performance. Several of the companies responsible for these films have overdue statutory accounts, with some lagging years behind the submission deadline—a criminal offence under UK law. While these films do not appear on the official list of those holding final BFI certification, records indicate many did obtain interim certification, unlocking taxpayer support prior to project completion.

Concerns have been raised regarding the accuracy of the reported production costs forming the basis for the tax relief claims. For example, the 2018 science fiction film Solis reportedly received nearly £1 million in tax credits based on claimed production costs of £4.7 million, yet its director asserts the budget was only around £700,000. Gatecrash, released in 2020, similarly reported a budget of £4.5 million but allegedly had actual costs closer to £750,000, while still receiving significant taxpayer subsidy.

Industry rules stipulate that interim tax relief should be repaid if a project fails to achieve final BFI certification, and tightened 2024 regulations now limit transactions between connected parties when claiming incentives. The BFI, responsible for administering Britain’s £500 million annual film tax credit scheme, refrained from public comment on the status of the Latham films but reiterated its role in safeguarding the integrity of the system. HMRC has also declined direct comment, while stressing its commitment to strict compliance oversight.

The ongoing investigations reflect the government’s determination to prevent misuse of tax reliefs intended to foster genuine investment and job creation in the UK’s film industry. Liquidators are currently exploring legal avenues to pursue claims against connected entities and to recover substantial sums allegedly diverted to associated companies. No allegations of wrongdoing have been made against actors or other creative professionals involved in the productions under examination. Alan Latham remains silent in response to repeated requests for comment.