Bristol & West loses tax tribunal appeal

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Bank of Ireland subsidiary Bristol & West (B&W) has lost an upper tier tribunal appeal and will have to pay £28m corporation tax on a £91m gain. 

In April 2013, the subsidiary lost a first tier tribunal to HMRC for its attempt to take advantage of novation rules in the Finance Act 2002.

In Bristol and West v HMRC [2013] UKFTT 216, the court heard how B&W transferred interest rate swaps from Bristol & West to another of its subsidiaries, Bank of Ireland Business Finance (BIBF).

In August 2003, B&W novated 220 interest rate swaps to BIBF in consideration of a payment to B&W of £91m to secure a tax advantage.

The bank believed...

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Hard to follow?
Are there some typing and other mistakes in this article - From the para beginning "The tribunal examined.." It's hard to follow from this point

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I agree

Yes it's very poor. AccountingWeb - any comments?

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