Nationalisation

All shares in Bradford & Bingley were transferred to the Treasury at 8am on 29 September 2008.

On 18 December 2008, Parliament issued the Bradford & Bingley Compensation Scheme Order which contained details of the compensation scheme for determining the amount of any compensation payable to persons who held Bradford & Bingley shares immediately before they were transferred into public ownership.

The scheme provided for the Treasury to appoint an independent valuer who would set his own procedures for assessing the amount of any compensation payable. In conducting his valuation, the Valuer would be required by legislation to assume that at the time that Bradford & Bingley was taken into public ownership, any assistance provided by the Bank of England or the Treasury had been withdrawn and would not be available in the future.

On 24 June 2009, following a competitive selection process, the Treasury appointed Mr Peter Clokey, a partner in the Valuation Group of the Corporate Finance Division of PricewaterhouseCoopers LLP (“PwC”), as the independent valuer.

The Valuer issued his assessment notice in respect of shares on 5 July 2010 and this stated that no compensation is payable by the Treasury to former shareholders. Following the publication of this notice, former shareholders were given the opportunity to request that the Valuer re-consider his determination and after consideration of such requests the Valuer issued a revised assessment notice on 14 March 2011. The revised assessment notice upheld his original decision that no compensation is due to former shareholders. A number of former shareholders who were dissatisfied with the revised assessment notice made applications to the Upper Tribunal (Tax and Chancery Chamber) to consider whether the Valuer's determination was "reasonable".

The Upper Tribunal carried out a review and, on 19 July 2012, Judge, Sir Stephen Oliver recorded that: "I am satisfied from my examination of the circumstances that the Valuer carried out his valuation function wholly in accordance with the Compensation Scheme".

Sir Stephen did not grant permission to any of the former shareholders to appeal to the Court of Appeal and the Valuer's revised assessment notice was therefore confirmed.

Other than providing information to the valuer when requested, Bradford & Bingley did not have any involvement in the valuation process.

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