Summary Box: Barclays faces $800M UK tax action

AP News
Posted: Feb 28, 2012 3:34 PM
Summary Box: Barclays faces $800M UK tax action

BANK TARGETED: Barclays PLC revealed that it is the bank targeted by the British Treasury's action to shut down two methods of avoiding tax, a change in the law that could cost the bank up to 500 million pounds ($800 million).

FOLLOWED EXISTING LAW: Barclays said it had voluntarily informed tax officials that it had repurchased some of its debt "in a tax-efficient manner" and insists that its methods complied with existing law

LEGISLATION PENDING: The Treasury had described the two methods as "highly abusive" and intended to circumvent tax laws. It is drafting legislation to bar these arrangements retroactively to Dec. 1.