The HM Revenue & Customs (HMRC) is reportedly planning to sell UK taxpayers’ personal data to private firms.

If the new legislation being drawn up by the HMRC gets official nod, it would allow HMRC to share anonymised information to third parties including companies, researchers and public bodies.

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Treasury minister David Gauke is overseeing the plan, The Guardian reported.

But former Conservative minister David Davis told the Guardian the plans were "borderline insane".

In its response to a consultation on the proposals last year, HMRC insisted the principle of "taxpayer confidentiality" would be protected under the reforms.

In its response to a consultation on the proposals last year, HMRC insisted the principle of "taxpayer confidentiality" would be protected under the reforms.

Plan to release taxpayers’ data comes amid concern among privacy campaigners about the government’s Care.data scheme to share medical records with third parties.