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The government minister with overall responsibility for Help to Buy is being accused of sailing pretty close to the wind by using offshore banking arrangements for her buy-to-let property company.

Andrea Leadsom, the City minister and a former Barclays banker, is reported to have placed her shares in the property company Bandal - created by the minister and her husband - into trusts for the benefit of her children.

The Independent newspaper claims this is a move that is commonly used to avoid inheritance tax.

The newspaper makes clear that there is no suggestion that Leadsom's schemes are unlawful. But the City minister's former use of offshore banks to service her personal buy-to-let property business is uncomfortable for the minister and her boss Mr Osborne, who has criticised tax avoidance schemes and railed against the use of offshore banking arrangements claims the paper.

Leadsom resigned as a director of Bandal in February just before she was promoted to the Treasury. She was replaced as a director by her 18 year old son whose occupation is listed at Companies House as a student.

Charges over two of Ms Leadsom's buy to let properties in Oxford were created offshore in 2004 and 2006 in favour of Kleinwort Benson (Channel Islands) Ltd, which is based in Jersey. These were moved back within the UK last October to Kleinwort Benson Bank Ltd, apparently as Ms Leadsom's Westminster star began to rise says The Independent's investigations reporter, Tom Harper.

A Liberal Democrat spokesman says Leadsom is sailing pretty close to the wind but the minister's office says this is a normal corporate situation and all tax that is due is being paid.

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