Written question asked by Lord Oakeshott of Seagrove Bay (Liberal Democrat), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Wednesday, 7 December 2011.

Taxation

Question: To ask Her Majesty’s Government what steps they have taken to ascertain the tax status of the bid vehicle and the insertions in it through which Virgin Money is acquiring Northern Rock plc; and whether in comparing this bid with possible otherbids from institutions or individuals wholly resident and domiciled in the United Kingdom full account was taken of the possible tax loss of value to United Kingdom taxpayers from taxable profits going offshore.

Answer: The Government are unable to comment on individuals' or companies' tax arrangements. Any information relating to UK tax liabilities is held by HM Revenue and Customs on a confidential basis, and therefore the requested information cannot be provided. HM Treasury has issued guidance to departments, which emphasises that departments should base commercial decisions on the need to secure value for money, independent of any tax advantages that may arise from a bid.

Secondary information