A MAN and woman from Chesham have been arrested as part of an investigation into a suspect £12m VAT fraud.

About 50 HM Revenue and Customs investigators, assisted by Thames Valley Police officers, searched more than a dozen residential and business premises in Chesham, Watford, Barnet and Harrow on Tuesday.

Seven people – including the two from Chesham – were arrested on suspicion of being involved in VAT fraud/false representation contrary to the Fraud Act and money laundering offences, HMRC said.

HMRC Assistant Director Criminal Investigation Colin Spinks said: "We will continue to work together to crack down on suspected tax fraud, which deprives the UK of vital public funds."

The seven have been released on bail until July 7.