Curzon Capital / Capital Contracts Contractor Loan Scheme – Being Sued for “Loan” Repayment?

If you participated in a contractor loan scheme administered by Curzon Capital Limited / Capital Contracts, and you are now being chased, or sued, for repayment of an alleged “loan”, you should take urgent legal advice.

We are assisting a number of contractors and business owners impacted by claims connected with the International Services Benefit Trust (trustees historically understood to include Bourse Trust Company Limited) and subsequent trustee/servicing arrangements.

If you have received a letter of claim, statutory demand, bankruptcy proceedings, county court claim form, or threats of proceedings, do not ignore it. Early action can materially improve your position.

What was the Curzon Capital / Capital Contracts loan scheme?

The scheme was marketed to contractors and business owners, typically involving diverting income into a trust structure and then extracting value via loan agreements.

As regards the loan agreements, literature included statements along the following lines (emphasis added):

“Is there any risk I will have to repay the loan?”
“The loan is received as a benefit & can be written off at any time. Although for IHT purposes the participant may wish to leave the loan in place”.

This sort of language raises obvious questions about whether the “loans” were ever intended to be repaid, and whether the documentation reflects the reality of what happened.

Why are people being pursued now?

We are seeing cases where a new trustee / scheme operator is said to be involved (including Gary Clarkson Tax Limited), and where the purported loans appear to have been assigned to Pembroke Advisory Limited (understood to be a Dubai entity).

Pembroke are reportedly issuing proceedings against participants, seeking repayment of the purported loans.

These claims can move quickly. Missing deadlines can result in default judgment, enforcement action, and escalating costs.

What should you do if you’ve received a demand or court claim?

1. Do not ignore correspondence.

2. Preserve documents: scheme pack, trust/loan paperwork, emails, payment schedules, statements, adviser communications.

3. Get specialist advice immediately: there may be defences based on the documentation, the nature of the arrangements, assignment issues, limitation, and/or other points specific to your facts.

4. Avoid informal admissions: a quick email response can be used against you later.

Speak to us urgently

If you participated in the Curzon Capital / Capital Contracts contractor loan scheme, or the International Services Benefit Trust, and you are now being pursued by Pembroke Advisory (or any other entity) for repayment, act without delay.

Contact us now for a confidential discussion.

You can email Matthew Sharp at msharp@brownrudnick.com