Some partners at certain magic circle law firms are still not paying their fair share of tax, the Liberal Democrat Treasury spokesman claimed this week, after first raising the issue back in June.

Lord Oakeshott said in the House of Lords then that, according to ‘a tax specialist at one of the big four accountancy firms’, accountants ‘convert the hundreds of thousands, or indeed millions, that are earned every year by each of the partners in some of the main magic circle law firms into so-called capital profits that are taxed at only 18%.’

Oakeshott alleged to the Gazette this week that, despite the government raising capital gains tax (CGT) from 18% to 28% for higher rate taxpayers in the budget in June, some partners continue to avoid paying their fair share by using avoidance schemes.

He called for any party with knowledge of the alleged avoidance schemes to come forward with information ‘so we can ensure Britain’s tax burden is fairly shared’.

Oakeshott said that accountants recently told him that a mid-tier law firm enquired about setting up an avoidance scheme so partners could take advantage of the lower CGT rate.

He said: ‘We are talking about organised, aggressive operations. There is a considerable gap between the 28% CGT rate, and the 50% top-rate of income tax.

‘I have also been passed very interesting information about leading accountancy firms operating similar artificial avoidance schemes for their own partnerships.’

Oakeshott told parliament in June: ‘These same solicitors also charge the British government and the British taxpayer millions of pounds for advice. I do not know how these professionals, who pride themselves on high ethical standards and high standards of corporate governance, look at themselves in the mirror in the morning. It is not just the private equity bosses who pay less tax than their cleaners.’

David McIntosh, chair of the City of London Law Society, said he was not aware of any such practices, adding that he was unimpressed by ‘nebulous accusations made under parliamentary privilege’. He added that City solicitors make ‘a very substantial contribution to the Exchequer’.