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Court shuts down £400m tax avoidance scheme

Court shuts down £400m tax avoidance scheme

A £400 million tax avoidance scheme devised by advisers who also created schemes used by Jimmy Carr and Chris Moyles has been shut down, according to The Times.

The Highlands scheme hit the headlines last year when it was revealed that 305 investors used it to claim £391.8 million of tax relief.

It was shut down after a judge ruled that ‘it was a tax avoidance scheme with no underlying purpose whatsoever’.

According to The Times the scheme was devised by NT (No Tax) Advisors and created by SG Hambro, the private bank owned by Société Générale.

The Times reported that SG Hambro set up and controlled the offshore companies involved in Highlands through a charitable trust and then created tax relief for investors by arranging a series of transactions involving dividend purchase.

Treasury Minister David Guake told the paper: ‘These schemes are an affront to the vast majority of businesses and people who pay what they owe.’

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