HMRC has announced that five people from the Midlands have been arrested on suspicion of being involved in gift aid fraud estimated at £450,000.

Last week, a man aged 25 and a woman, 22, were arrested by HMRC officers at two residential properties in Birmingham, as well as a female, 33, at a residential property in Leicester. Yesterday two men, both 26, were arrested at a Birmingham police station.

Officers removed computers and business records for further analysis. All five people were questioned and then released on bail until January 2014. Enquiries are continuing.

Adrian Farley, HMRC assistant director, criminal investigation, said: 'These people have been arrested on suspicion of making fraudulent gift aid claims and money laundering.'