The American government is fighting the Treasury over a £50million tax demand.
The Treasury is demanding that it pay VAT on the construction of its new £275million embassy, known as The Iceberg. The building would be situated in Nine Elms, Battersea, and would be finished by 2016.
America doesn't think its embassy is safe enough at present The U.S. wants to move its embassy from Grosvenor Square, Mayfair, to increase security. The new building, to be built near New Covent Garden Market, would be protected by a 30-metre 'blast zone', (SAYS A LOT ABOUT AMERICA'S STANDING IN THE WORLD)!
The U.S. government has also refused to pay the congestion charge since its introduction in 2003, claiming diplomatic immunity from taxes. At the start of last month it had 30, 979 unpaid tickets, running up a debt with Transport for London of almost £3.6million.
One Whitehall source told Dark Lochnagar that the battle to avoid VAT on the new embassy had reached high levels in the U.S. government. "Gordon Brown raised it with President Obama at the last G20 summit but Obama told him to GO AND FUCK HIMSELF".