The CJEU judgment in European Commission v UK has rejected a challenge to the UK group relief legislation, following on from the Marks and Spencer litigation. Rupert Shiers (Hogan Lovells) reviews the decision and asks where this leaves us.
On 3 February the CJEU rejected a challenge by the European Commission to the lawfulness of the UK’s current regime for cross-border loss relief (see European Commission v UK (C-172/13)). HMRC’s reported intention is ‘to review all outstanding claims for cross-border group relief in light of this very favourable judgment’.
The relevant part of CTA 2010 contains two especially contentious provisions. The first is that the ‘no possibilities’ condition drawn from para 55 of the CJEU decision in Marks and Spencer Plc v Halsey (C-446/03) must be satisfied immediately after the end of the surrendering...
