SINGER Katie Melua says she paid her taxes in full after learning she was among a number of stars who had invested in a controversial tax avoidance scheme.

Melua is among more than 1,600 people, including celebrities, doctors and judges, who put money into the Liberty scheme, according to a newspaper.

About £1.2 billion is said to have been put into Liberty from 2005 to 2009. The scheme created a tax loss for investors which they could offset against other income, the paper reported.

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Melua, who is reported to have put £850,000 into it, said she settled her tax in full with HM Revenue and Customs when it was brought to her attention.