Emma Reynolds, Labour MP for Wolverhampton North East, has expressed concern about the tax status of a group campaigning to leave the European Union.

It has been revealed that Leave.EU has been set up by an offshore company that offers tax avoidance services to “high net worth individuals”. The campaign group, backed by Nigel Farage, the UKIP Leader, is seeking recognition by the Electoral Commission as the official campaign to leave the European Union in the forthcoming referendum.

Leave.EU was incorporated in the United Kingdom as a wholly-owned subsidiary of a finance firm, STM Fidecs, based in low-tax Gibraltar that specialises in “international wealth protection”.

STM Fidecs boasts on its website of expertise in maximising tax efficiencies for entrepreneurs and expatriates and of “structuring international groups, particularly separating and relocating intellectual property and treasury functions to low- or no-tax jurisdictions”.

The firm’s website adds: “With its recently introduced 10% tax rate for companies, its local source basis of taxation and special tax regimes available for high net worth individuals and working expatriates, Gibraltar can provide some interesting opportunities.”

Emma said “Leave.EU claim to have Britain’s best interests at heart, but they have questions to answer about allegations that they are not playing fair when it comes to taxes which pay for schools and hospitals in Wolverhampton and across the UK.

“The truth is that Britain is better off in Europe, which brings us jobs, growth and investment. Companies like Jaguar Land Rover have invested in Wolverhampton in part because of our access to the biggest free market in the world – the EU single market. According to the Confederation of British Industry, our EU membership is worth over £3,000 a year to every family in the country and 3.5 million jobs in Britain depend on our trade with the rest of Europe. Leaving the EU would put all this at risk.”