Two Cornish businessmen suspected of defrauding about £1 million of income tax have been arrested.

The men, aged 45 and 20, were arrested in St Austell at 7.30am yesterday by HM Revenue and Customs criminal investigators.

A third man, aged 22 and also from St Austell, was arrested on suspicion of money laundering offences.

Two properties, one business address and one residential, in the Mid Cornwall town were later searched. All three have been bailed until October pending further investigation. No further details were released.

HM Revenue and Customs spokesman Bob Gaiger said: "HMRC take attempts of tax fraud seriously and will not hesitate to investigate those who ultimately rob the exchequer of public funds.

"Anyone with information about individuals who may be involved in tax fraud can contact the Customs' hotline on 0800 59 5000."