Why did Al Gore establish the Generation Investment Management in the UK? The UK Taxation website sheds some light on this and by all means, it’s a way to evade tax in a legal way.

Investors in Carbon Credits Partnerships are generally likely to be persons with substantial income or capital gains that they wish to shelter from tax – Premiership footballers, investment bankers and directors of the top 100 companies are prime candidates. The potential savings in any example are calculated on the taxpayer being liable at the 40% tax rate.

Partnerships are effectively transparent for UK direct tax purposes, as is a Limited Liability Partnership, in that each partner, or member of the LLP, is usually treated for tax purposes as if he incurred his proportionate share of any partnership trading profit or loss himself. A member of a trading partnership which incurs a loss would usually be able to relieve his share of the trading losses against his income or capital gains.

Expenditure in the first year will almost inevitably give rise to losses which will be, with most partnerships, close to 100% of the investor’s subscription.