Three tax advisers have been arrested as part of a probe into a suspected £132 million tax fraud, HMRC has revealed this morning.

More than 30 officers from HMRC searched four residential and one business address during morning raids yesterday in the North West and Midlands. Computers, business and personal records were seized during the operation.

Officials said that the arrests were made as a result of a HMRC investigation into a complex scheme involving offshore trusts used by professional financial advisers to facilitate UK individuals to avoid around £132 million in Income Tax.

Paul Maybury, assistant director, Fraud Investigation Service, HMRC, said: “These arrests show that we are determined to tackle not only those suspected of tax fraud, but also the professionals who we believe abuse their position of trust to help them do it.

"The vast majority of taxpayers pay the tax they owe, but for those who don’t we will not hesitate to use our full range of powers to ensure that nobody is beyond our reach."

One residential address was also searched in Cheshire and one business premises was searched in Greater Manchester.

The three men have been interviewed and released on bail pending further enquiries.

The arrests were:
- A man, 56, from Greater Manchester
-A man, 67, from Derbyshire
-A man, 59, from Warwickshire