HBOS’ private equity-focused subsidiary generated more than a tenth of the UK bank’s net profits last year but paid 13.5% in tax, according to figures that look set to rekindle taxation level debates.

Uberior Investments, the holding company for most of Bank of Scotland Corporate’s equity investments, managed net profits of £448.6m (€563m) in 2007 and paid £280m in dividends to parent HBOS, according to accounts filed with Companies House.