In Mindpearl AG v HMRC (TC01400 – 10 October) a Swiss company (M) began trading in the UK in 2001. It submitted corporation tax returns claiming loss relief.
HMRC issued amendments disallowing the claims on the basis that the requirements of ICTA 1988 s 343 (see now CTA 2010 s 940A et seq) were not satisfied.
M appealed contending as a preliminary point that the UK legislation contravened the EC Treaty.
The First-tier Tribunal rejected this contention and dismissed the appeal. Judge Shipwright observed that ‘it is hard to see when transfers of trades and transfers of shares are each treated in the same way whether UK-incorporated or non-UK incorporated companies are involved that there is a restriction which is discriminatory’.
Why it matters: The provisions governing the carry-forward of...
