Lloyds accused of avoiding tax to artificially boost profits - papers

clock •

A former employee of Lloyds Banking Group has accused the bank of artificially inflating its profits by almost £1bn through the use of aggressive tax-avoidance schemes and exotic "Lehman- style" offshore deals which he said amounted to false accounting.

The former senior tax manager at the bank told an employment tribunal Lloyds was involved in running battles with Revenue & Customs after it embarked on a hostile relationship with the tax authority over multimillion-pound corporation tax bills while involved in extensive manipulation of the way it accounted for unpaid taxes, The Guardian reports. Between 2005 and 2007, he said, the bank insisted that finance staff devise ever more elaborate ways to depress a growing tax bill, many of them involving the now collapsed Lehman Brothers and the discredited financial products division of AIG,...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Why wellbeing is integral to financial planning

Why wellbeing is integral to financial planning

First Wealth founder and managing director Anthony Villis

Isabel Baxter
clock 25 September 2026 • 1 min read
Talking to each other is the best way to boost financial confidence

Talking to each other is the best way to boost financial confidence

'There's a permission problem'

Sophie Hall
clock 25 September 2026 • 3 min read
Feel Good Friday: Royal London partners with disabled racing driver on equality initiative

Feel Good Friday: Royal London partners with disabled racing driver on equality initiative

Working with Nicolas Hamilton, younger brother of F1 champion Lewis

Professional Adviser
clock 25 September 2026 • 1 min read