TaxCorporate TaxBarclays to close tax planning unit

Barclays to close tax planning unit

Barclays expected to close controversial tax structuring unit as part of an extensive strategic review of the business

BARCLAYS IS TO CLOSE its controversial tax structuring unit as part of an extensive strategic review of the business, it has been widely reported.

The bank is expected to shut the tax planning arm of its structured capital markets business in a bid towards repairing its battered reputation following a succession of scandals.

It is thought the bank will continue to offer vanilla tax planning products to its customers, but will scrap the unit which advises companies on the use of sophisticated and complex structures to cut their tax bills.

New chief executive Antony Jenkins, who claimed to be “shredding” the legacy of predecessor Bob Diamond, is expected to announce the move on Tuesday, alongside Barclays’ full year results.

Diamond was forced to step down as a result of the Libor-rigging scandal, which also led to the departure of chairman Marcus Agius and chief operating officer Jerry del Missie.

In addition to the £290m fine for rigging the benchmark Libor interest rate , the bank is also dealing with scandals around the mis-selling of financial products.

Last week, Barclays announced that Chris Lucas, finance director since 2007, and general counsel Mark Harding, who has been with the bank for ten years, will both step down once successors have been found.

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

1m Alia Shoaib, Reporter
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

2m Alia Shoaib, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

2m Clear Books | Sponsored
Colin: Tell them about the money, mummy

Business Regulation Colin: Tell them about the money, mummy

1y Taking Stock
Five key tax and business burdens the chancellor must ease in Autumn Statement

Business Regulation Five key tax and business burdens the chancellor must ease in Autumn Statement

1y Kevin Reed, Writer
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

2m Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

2m Emma Smith, Managing Editor
Autumn Statement: Investment and tax avoidance highlighted in Hammond's speech

Corporate Tax Autumn Statement: Investment and tax avoidance highlighted in Hammond's speech

1y Kevin Reed, Writer