Get ready - new voluntary bank codes could soon be injecting banks avoidance taxes straight back into the economy

Barclays’s, amongst a selection of other leading mortgage lenders, have been found to be telling fibs according to Liberal Democrat spokesman Vince Cable.

In a startling report led by Cable, he revealed to the public how during 2007 Barclay’s bank invested over £11 billion into US loans in order to avoid taxation.

Yet Barclay’s were not the only bank found to be deliberately avoiding tax. The Royal Bank of Scotland was also amongst those named for cheating the system

During their expansion a few years ago, RBS are believed to have sunk in over £25 billion into tax avoidance schemes. A decision that has ended up costing UK and US taxpayers more than £500 million in lost revenue.

Now whilst tax avoidance is technically not illegal, the prevention of such schemes could work to benefit the entire economy as well as reduce taxpayers’ bills.

And it is for this reason that the Chancellor of the Exchequer Alistair Darling has proposed the implementation of a new voluntary banking code system. Through this coding the Inland Revenue will be able to monitor banks and make sure that they follow the rules, pay their taxes and prevent taxpayers making further losses.

And it is a system that Liberal Democrat Cable also believes will work.

Under his thesis that it is immoral for banks to try and claim the Governments special liquidity scheme when they are not paying taxes themselves, this new system will work to bring stability back to the market and offer taxpayers real, credible loans.

Plus considering the fact that the government’s liquidity scheme is one funded by taxpayers (for the purpose of increasing loan funds), the money these banks will have to pay in tax can be put straight back into the economy – a bonus for everyone.

Make your investments into a lasting asset

At Property Mentor we believe it is vital that investors are aware of everything that affects the property market, including such occurrences as these.

By having a keen knowledge of everything that is happening with the economy, you can prepare your property portfolio for all eventualities and can turn this information to your advantage.

Take the above information. At a glance the fact that these banks are avoiding taxation seems irrelevant, but when you factor in how this has gone on to impact on lending options and taxpayers’ funds; this information can make a real difference to your investment decisions.

A decision which at Property Mentor we can help you to make.

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Property investment doesn’t have to be reserved to real estate gurus. You too can become a part of a growing niche that are making profitable gains from the property market.

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