HMRC launches Barclays tax probe

HM Revenue and Customs is investigating claims by a whistleblower of alleged tax avoidance schemes at Barclays Bank, the Guardian has reported.

The claims were linked to documents leaked at a time when the bank has confirmed it is in talks with the Treasury about the government stepping in to ring-fence some of its riskiest assets.

The Barclays' whistleblower is allegedly an employee of its structured finance department at Canary Wharf and disclosed to the Liberal Democrats details of a scheme codenamed Project Knight.

Details of a deal involving $16bn in US loans that allegedly generated substantial tax benefits, involved a network of Cayman Island companies and Luxembourg subsidiaries was leaked in a memo.

Further reading:

Barclays in talks with Treasury about Asset Protection Scheme

Overview: Europe's whistle blower

Lib Dems call for tax haven probe