Bank of Ireland (BIBH) - Success in dispute with HMRC concerning taxable treatment of tri-partite repo

08 Feb 2008

Slaughter and May represented Bank of Ireland Britain Holdings (BIBH) in relation to a dispute with HMRC to the value of just over £3 million. It arose out of the application of the Income and Corporation Taxes Act 1988 to a tri-partite securities repurchase transaction ("a repo"). The Bank of Ireland was successful before the Special Commissioners, the High Court and in a judgment handed down on 8 February 2008 in the Court of Appeal; in the process it obtained important clarification on the taxable treatment of tri-partite repos. Whilst the size of the market in these specialist structured finance transactions is unclear, as they are not made public, estimates put the potential overall taxation impact (going back up to six years) in the hundreds of millions of pounds.

Contacts

Nick Gray (partner)


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