Banks bailed out by the taxpayer during the financial crisis are telling investors they can avoid tax charges by investing in their in-house funds, a BBC Panorama investigation alleges.
At the Jersey-based Lloyds TSB Offshore office, an employee is understood to have discussed investing in the bank's High Income fund with the undercover Panorama customer. The fund, with assets of almost £300m, is one of a number of Lloyds' funds which pay income using an agent in Hong Kong. The Lloyds employee, in the course of his advice, allegedly told the undercover reporter income earned on deposits made in the tax 'haven' is paid to clients via Hong Kong to "get around" the European Savings Tax Directive. "Income made from the fund would go to Hong Kong and then Hong Kong wo...
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