HMRC has won a legal challenge against UBS and Deutsche Bank over the way the banks paid their staff bonuses.
The Supreme Court overturned a previous decision that found in favour of UBS and Deutsche Bank, reports the Financial Times.
The case centres around the way bankers received shares as part of their bonuses, which meant that the banks did not have to pay income tax or national insurance on the payouts.
Court papers stated that UBS avoided paying £36.9m in tax and £12.7m in national insurance for £92m of bonuses, while Deutsche Bank’s scheme centred on £91m of bonus payouts.
Offshore schemes were used for bankers to receive shares as restricted securities in lieu of a bonus payout.
In a statement UBS said: “This matter concerns a disagreement over the interpretation of highly technical tax legislation and dates back to a one-off compensation plan for 2003.
“While we are disappointed with the outcome, we are grateful to the Supreme Court for their careful consideration of the issues.”
Deutsche Bank declined the Financial Times’ request for comment.