SOUTH Lakes MP Tim Farron has released his tax return in the wake of the Panama Papers scandal and in a bid to restore the public's faith in politics.

Documents leaked last week revealed how wealthy individuals, including public officials, hid their assets from public scrutiny.

It prompted Prime Minister David Cameron to answer serious questions about his stake in his father's business, Blairmore Holdings Inc.

Mr Cameron became the first serving Prime Minister to publish his tax returns, and now Lib Dem leader Tim Farron has followed suit.

His tax return reveals his taxable pay (after pension contributions were taken off) was £57,815 in the last financial year, on which he paid a total of £12,753 in tax.

Mr Farron called for the government to introduce a real anti-avoidance rule as the anti-abuse rules currently in place 'do not go far enough'.

He wants to strengthen penalties for participating in repeated avoidance schemes and use the anti-corruption summit this May to force overseas territories to hold a central list of beneficial ownership in each fund created, and for that list to be made available to HMRC.

Mr Farron said: "We mustn’t let this issue be side-tracked by arguments about individual politicians. The key thing it has shown is that it's all too easy to avoid paying tax.

"We must use this as an opportunity to enact real reform of the tax system, so that everyone from the top to the bottom pays their fair share. If we crack down on tax avoidance and loopholes, that is money that can be put towards schools, hospitals and essential services."