Crackdown on tax avoidance firms proposed by government

The government could force finance companies to hand over the client lists in an initiative to curb aggressive tax avoidance schemes. The proposal is part of a consultation on curbing tax avoidance.

According to the BBC, Treasury minister David Gauke will tell the Policy Exchange think tank that scheme operators will be "named and shamed" for not sticking to the rules.

Officials often have difficulty investigating schemes that are based off-shore. Under the proposals UK promoters will be made to hand over customer databases.

Tax avoidance represents nearly 14 per cent of the UK tax gap, according to the Treasury.