ScotWids loses court battle against HMRC

The insurer appeared in court in July to challenge the Revenue on tax paid on a £1bn sum during its demutualization between 1999 and 2001. In 2000, Scottish Widows plc was formed by Lloyds to acquire the business of the Scottish Widows Fund and Life Assurance Society as it then was. Scottish Widows plc then created a fund to maintain its long-term insurance business and, within it, a capital reserve account holding some shareholders' capital was established. In 2001, Scottish Widows suffered trading losses and transferred money from the capital reserve account to cover those losses...