An MP for the local area has hit back at claims that she used trusts to reduce her tax bills as ‘totally untrue’.
Northamptonshire South M P Andrea Leadsom, who is a newly-installed treasury minister, made the responde after the story about her appeared in The Independent and other media. The stories allege that, in 2004, she chose to place the shares of a property company she owned with her husband – Bandal Ltd – into trusts for the benefit of her three children in order to avoid inheritance tax. The paper accused the MP of obtaining loans for two of its buy-to-let properties with a Jersey branch of an investment bank in a further tax avoidance scheme in 2006.
The reports did not accuse Ms Leadsom of doing anything illegal but they made the link to Chancellor George Osborne who wants to clamp down on those using offshore banks.
Ms Leadsom has adamantly denied the allegations made in the newspaper reports.
She said: “Bandal Ltd is a totally UK company that is illegible for tax on all its profit. There is no offshore element of Bandal Ltd and there are no tax avoidance schemes.”
She stepped down as director of the firm in February.
The former banker, who was elected as an MP in 2010, added: “I have paid tax on absolutely everything I have earned, with the only exception being the year I worked for Barclays in Sydney, Australia.”