How does the K2 tax avoidance scheme work?
How does a tax avoidance scheme work?
HMRC has confirmed that it is looking into the workings of an offshore tax avoidance scheme used by a number of wealthy individuals - as part of the Government's high profile clampdown on individual tax avoidance which is estimated to cost the Treasury £4.5bn each year.
Almost £170m is believed to be sheltered from the UK tax authorities each year via the scheme, which boasts comedian Jimmy Carr as a significant member.
Roy Lyness from Peak Performance Accountants told a reporter from the Times that a hypothetical tax bill could be slashed to a mere 1.25% via the scheme, which has an estimated 1,100 members.