UK Tax Statement



This statement applies to all AIB UK entities.


Approach to risk management and governance arrangements in relation to UK taxation

Ownership of tax risks resides with the Boardand our governance ensures that suitably qualified people are involved in decisions related to tax.


We seek to fully comply with our tax filing, tax reporting and tax payment obligations. However, given the size and complexity of the organisation and our volume of tax obligations it is not possible to completely eliminate tax risks. In order to mitigate these risks a number of policies and procedures are in place to manage tax risk and form part of the broader framework for risk management across the Group. Central to this is our Tax Risk Management Framework (Framework) designed to identify, manage and report tax risks.  The Framework and the policies, standards and guidelines associated with the operation of the Framework are applicable to all employees of AIB and to all AIB Group entities. From time to time we may seek external advice in relation to significant transactions or areas of uncertainty.


We adopt a “three lines of defence” approach to managing tax risk. Generally the business management functions perform a first line of defence and are primarily responsible for ensuring that the Framework and associated policies are communicated, implemented and operate effectively within their business units. Second and third lines of defence are performed by Group Tax and Group Internal Audit respectively.



Tax planning and tax risk

AIB’s strategic ambition is

  • to be at the heart of customers’ financial lives by always being useful, always informing and always providing an exceptional customer experience.
  • to deliver a bank with compelling, sustainable capital returns and a considered, transparent and controlled risk profile.

Our tax risk appetite is aligned to the strategy. We aim to balance the needs of, and obligations to, our stakeholders, including shareholders, customers, regulators and tax authorities.  We do not have any appetite for breaches of tax law, engaging in abusive or artificial tax planning or engaging in any action of tax evasion.  


We have adopted, and comply with, the requirements of HM Revenue & Customs (HMRC)'s Code of Practice on Taxation for Banks. Accordingly, we do not promote or engage in tax planning that does not support genuine commercial activity or give rise to results inconsistent with the underlying economic consequences of the transactions concerned. Any promotion of tax advantaged products is limited to those where the tax consequences are consistent with the intentions of UK Parliament.


We remunerate our employees such that the proper amounts of tax and social security contributions are paid on the rewards of employment.



Relationship with the tax authorities

We proactively engage with HMRC to maintain an open and transparent relationship. This includes discussing, on a real-time or near real-time basis, key developments in our business and the associated potential impacts and may involve disclosing and seeking to resolve a known issue prior to the filing of the relevant tax return.


In the event of differing views we will work constructively with HMRC with an aim of achieving early resolution.


AIB regards the publication of this tax strategy as complying with the duty under paragraph 16(2) of Schedule 19 of the Finance Act 2016 to publish the UK group tax strategy in the current financial year.