Originally Posted by
KARFA
I must admit I am not an expert on EC261 so I defer to the advice in the EC261 thread on this point in terms of exactly what would be due. Whilst it could be argued the voucher per se is "free", the avios cost and the taxes/fees/charges are not as you noted.
BA's policy on this is clear - EU261 does not cover taxes and charges (at least on redemptions) and a 241 has no cash value for the companion.