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Royal Bank of Scotland

Volume 488: debated on Tuesday 3 March 2009

To ask the Chancellor of the Exchequer what assumptions he made about (a) the state of the economy over the next five years and (b) the likely level of default on Royal Bank of Scotland (RBS) assets when setting the fee for RBS’s participation in the asset protection scheme. (260304)

The consideration for the asset protection scheme takes into account a number of factors including the nature and risk of the assets protected, the interests of taxpayers, and the objective of ensuring financial stability.

To ask the Chancellor of the Exchequer whether the Royal Bank of Scotland plans to use losses which it made in its last accounting year to reclaim corporation tax which it has already paid. (260311)

To ask the Chancellor of the Exchequer whether tax losses Royal Bank of Scotland (RBS) incurred in 2008 will be available for offset against tax paid by RBS in previous years in the context of the asset protection scheme. (260305)

RBS have agreed not to claim certain UK tax losses and allowances for a number of years, meaning that when they do return to profitability, they will not be able to benefit from the losses accrued in the intervening period.