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’.
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.’