In Halley & Others v Belgische Staat (ECJ Case C-132/10) the ECJ held that ‘Article 63 TFEU must be interpreted as precluding legislation of a Member State such as that at issue in the main proceedings which provides as regards inheritance tax for a limitation period of ten years for the valuation of registered shares in a company whose centre of effective management is established in another Member State while the same limitation period is two years when the company’s centre of effective management is in the first Member State.’
Why it matters: Article 63 of the TFEU provides for the free movement of capital.
The ECJ held that the relevant Belgian legislation (concerning share valuation for inheritance tax purposes) contravened this provision.
