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  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...