HMRC v South Eastern Power Networks and others

In HMRC v South Eastern Power Networks and others [2019] UKUT 367 (24 December 2019) the UT found that CTA 2010 s 146B applied to reduce the proportion of losses which could be surrendered under consortium relief.

For consortium relief purposes Devin CKI1 and Eagle were all members of a consortium and between them they owned UKPNHL. The surrendering company was Hutchison 3G and the link company was CKI1. Devin was owned by HEH; and CKI1 was owned by CKI2 itself owned by CKI3. The consortium had completed the acquisition of a business and was restructured. As part of the restructuring the articles of association of UKPNHL were amended so that: the CKI companies had 74.6% of the voting rights; the threshold to pass shareholder resolutions was increased to 75%; and CKI13 and HEH entered into a voting agreement...