The Treasury has received legal advice from Government and commercial lawyers, and financial advice from accountancy firms and investment banks.
The Treasury’s external adviser fees will be shared between the banks participating in the Government’s recapitalisation. Those costs related to the nationalisation of Bradford and Bingley will be fully recovered from Bradford and Bingley.
We cannot comment on affairs of individual taxpayers because of taxpayer confidentiality. We vigorously challenge tax avoidance—through the courts if necessary—including where the taxpayer is partly owned by the Government and we expect banks to fully comply with their tax obligations. That is why the Chancellor of the Exchequer has asked HM Revenue and Customs to publish shortly a draft code of practice on taxation for the banking sector—so that banks will comply not just with the letter but the spirit of the law.
Further information about the undertakings made by participating banks will be available when the detailed terms of entry into the Asset Protection Scheme have been finalised.