Bank of London resolves tax issue after administrative delay

The Bank of London has paid all its taxes, a spokesperson said this week, after British media reported that the clearing bank had been hit with a so-called winding-up petition by UK tax authorities over unpaid sums due.

The tax body, known as HMRC, filed a winding-up petition on Thursday against the bank’s holding company The Bank of London Group Holdings, according to media reports confirmed by a spokesperson for the lender.

“The Bank of London Group Holdings Limited is fully up to date with all tax payments to HMRC,” the bank’s spokesperson said.

“The issue was due to a simple administrative handling delay caused by an internal miscommunication, which has been addressed.”

The Bank of London said separately on Sunday that it had raised 42 million pounds ($54.99 million) in August, before it became aware of the tax issue, as part of plans to grow its business.

The Bank of London was launched in 2021 by former Barclays executive Anthony Watson. The bank’s holding company counts several well-known figures on its board, including Harvey Schwartz, the CEO of private equity firm Carlyle, as group chairperson, and Peter Mandelson, a former Labour Party government minister, as his deputy.

Watson said on Sept. 3 he was stepping down from the CEO role but would remain as a senior adviser. Stephen Bell, the bank’s chief risk and compliance officer, took over the CEO role.

The bank is primarily a clearing bank, with customer deposits of more than 500 million pounds, as of August, which it places at the Bank of England rather than lending out, as most banks do.