HM Revenue and Customs is investigating a case of tax fraud in the carbon emissions trading market.

The case is a variation of carousel VAT fraud, and is thought to be the first of its kind, according to telegraph.co.uk

A spokesman for HMRC was unable to reveal the size of the fraud, but confirmed the department is pressing ahead on discussions with other EU tax administrations.

‘We are considering our options for countering any fraud that emerges in the UK involving carbon credits and will continue to engage constructively in EU-level anti-fraud work,’ he said.