Market leading insight for tax experts
View online issue

Consortium relief

A recent FTT decision has resulted in a further reference to the CJEU on the UK’s consortium relief rules and a broad interpretation of the non-discrimination article in the UK/Luxembourg Double Taxation Convention. Taxpayers however need to be wary of how they structure buy-out deals in joint ventures.

The applicants in The Felixstowe Dock and Railway Company & Others v HMRC [2011] UKFTT 838 were UK resident companies in the Hutchison Whampoa group whose ultimate parent was resident in Hong Kong.

They had claimed consortium relief for losses in the joint venture Hutchison 3G UK Limited (3G) which was part owned by the Hutchison group through a Luxembourg resident link company.

The case involved questions both on the EU freedom of establishment (which have been referred to the CJEU for a preliminary ruling) and on the applicability...

If you or your firm subscribes to Taxjournal.com, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
EDITOR'S PICKstar
Top