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Katie Melua admits being 'clueless' over tax affairs

Singer and musician Katie Melua has admitted how she was "clueless and inexperienced" when she followed the advice of experts to sign up to what turned out to be an aggressive tax avoidance scheme. The arrangement created a tax loss for investors which they could offset against other income.

Georgian-British musician Katie Melua. Credit: Roland Popp/DPA/Press Association Images

The singer was among around 1,600 people who were involved with the controversial Liberty tax strategy, but she went on to settle her tax in full with HM Revenue and Customs when it was brought to her attention.

She said it "sucks" that she has been under the spotlight for her part in it, and called for the schemes to be stopped. She was on a list including celebrities, doctors and judges which was given to The Times after they put around £1.2 billion into the scheme from 2005 until 2009.