Group relief and EU law development: In Volkerrail Plant Ltd v HMRC [2023] EWCA Civ 210 the Court of Appeal (CA) held that ICTA 1988 s 403D(1)(c) a provision in the UK’s group relief rules in force at the relevant time was compatible with the EU principle of freedom of establishment. The provision did not therefore need to be disapplied or (as previously held by the Upper Tribunal) read with a conforming interpretation. This was because the provision which denied surrenders of group relief by UK permanent establishments of non-UK resident companies where the relevant loss was ‘deductible from or otherwise allowable against’ non-UK profits of any person was justified by the overriding objective of preventing the double use of losses. As a result the taxpayers’ claims for group relief in respect of losses arising in a UK permanent establishment of a...
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Group relief and EU law development: In Volkerrail Plant Ltd v HMRC [2023] EWCA Civ 210 the Court of Appeal (CA) held that ICTA 1988 s 403D(1)(c) a provision in the UK’s group relief rules in force at the relevant time was compatible with the EU principle of freedom of establishment. The provision did not therefore need to be disapplied or (as previously held by the Upper Tribunal) read with a conforming interpretation. This was because the provision which denied surrenders of group relief by UK permanent establishments of non-UK resident companies where the relevant loss was ‘deductible from or otherwise allowable against’ non-UK profits of any person was justified by the overriding objective of preventing the double use of losses. As a result the taxpayers’ claims for group relief in respect of losses arising in a UK permanent establishment of a...
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