Bank of England includes Apple in bond buying scheme

Apple has been included on the Bank of England’s list of 100 companies eligible for its stimulus bond-buying scheme.

The Bank of England's new corporate debt purchase initiative was introduced as a stimulus measure after the Brexit vote. The scheme will see the bank enter the market for corporate bonds which are essentially tradeable IOUs for the first time.

The company made the cut as it makes a “material contribution” to the British economy, according to the central bank.

A source at the Bank told the BBC buying Apple bonds would help achieve the aim of the scheme which is to influence market prices.

Other factors taken into consideration for inclusion on the list are whether the headquarters are located in Britain or has a significant volume of sales.

Apple has its headquarters in Silicon Valley in the US and a proportion of its sales in the UK are legally recorded in Ireland.

Critics of the company accuse it of avoiding tax on UK sales by moving its earnings to Ireland.

The European Commission has called on apple to pay €13bn in unpaid taxes in Ireland, according to Sky News.

The Commission said Ireland allowed the iPhone maker to pay almost no tax on international sales which amounted to illegal state aid.

Apple and Ireland are both appealing the decision due to doubts hanging over the legality of the claim.

The bank hopes the scheme will drive down borrowing costs and encourage businesses to invest more.

Other controversial companies on the list include two British tobacco giants British American Tobacco and Imperial brands as well as McDonald's whose tax affairs are also under investigation in Brussels.

Apple's share price rose 2.50% to $108.05 on the NASDAQ at 1657 BST on Tuesday.