You may be aware that for the last 18 months we have been cooperating fully and openly with an HMRC general enquiry into a complex and detailed tax avoidance scheme known as gilt strip planning, which we carried out during 2003/2004 on behalf of a small number of clients.

We have always believed and still maintain that this type of scheme was totally legitimate tax planning, operated nationally by a large number of tax experts including some of the big four accountancy practices and that over the course of the last 18 months we believed we had satisfied HMRC’s concerns.

It was very disappointing therefore that yesterday (13 November) HMRC chose to carry out exploratory ‘raids’ on our offices in Leeds and London. More concerned were we to find out that some of our clients had also had visits.

Having been left with the feeling that the HMRC have used sledgehammer tactics, we are taking advice on our response, including compensation if appropriate. At present we continue to co-operate fully with HMRC.

Pending the outcome of their investigations, we are unable to comment further at this time, except to reassure all our clients and introducers that Mercury Tax Group remains totally committed to providing its clients with innovative tax planning and structuring advice, which in our opinion and that of Senior Counsel, is not only legal but also highly effective.

In other words, it is business as usual.