Merrill Lynch is unlikely to pay corporation tax in the UK for several decades after $29bn of losses suffered by the US investment bank were charged to its London-based subsidiary.

The figures, published in Merrill's regulatory filings, emphasise how the meltdown in the US subprime mortgage market is undermining tax receipts for governments far beyond America's borders. They also offer a rare glimpse into the complex tax management policies of a big global financial institution.