Lloyds to Contest Claim It Owes £1 Billion in Back Taxes to UK

Lloyds Banking Group Plc will appeal a tribunal decision after a judge found the lender owes £1 billion ($1.3 billion) in UK back taxes tied to winding down its operations in Ireland more than a decade ago.

Lloyds will likely have to recognize a reduction in cash of this amount when it reports earnings in July, according to a person familiar with the matter, who asked not to be named discussing non-public information. There will be no capital impact from the tribunal’s decision, the person said.

“Having reviewed the judgment in detail, we respectfully but fundamentally disagree with the tribunal’s ...