Cadbury, the British confectionery maker that became a cause célèbre for tax justice campaigners after its acquisition by US food group Kraft in 2010, engaged in aggressive tax avoidance schemes before the takeover that were designed to slash its UK tax bill by more than a third.

A Financial Times investigation into the tax affairs of the company has uncovered tax avoidance schemes former executives admit were “highly aggressive”. The schemes helped reduce Cadbury’s current tax on UK operations to an average ￡6.4m a year, despite British profits of ￡100m and turnover of more than ￡1bn.

Like many multinationals, Cadbury reduced its tax bill by loading its operations in high-tax countries with debt, while using equity to fund growth through low-tax jurisdictions.