With the litigation on UK exit charges seemingly set to continue, Ben Elliott (Pump Court Tax Chambers) examines the impact of a recent CJEU decision.
The background to Gallaher (Case C 707/20) is the EU treatment of ‘exit charges’. In summary an exit charge is a tax charge imposed by a member state on assets at the point when they leave its fiscal jurisdiction. At that point many member states understandably want to impose a charge on any gains which have accrued whilst the assets are within their fiscal jurisdiction notwithstanding that those gains have not yet been realised (i.e. the assets have not actually been sold for valuable consideration).
Two examples of exit charges which are presently the subject of litigation before UK tribunals are:
TCGA 1992 s 80: Where the trustees of a settlement become non-UK resident s 80 deems that the trustees have disposed...
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With the litigation on UK exit charges seemingly set to continue, Ben Elliott (Pump Court Tax Chambers) examines the impact of a recent CJEU decision.
The background to Gallaher (Case C 707/20) is the EU treatment of ‘exit charges’. In summary an exit charge is a tax charge imposed by a member state on assets at the point when they leave its fiscal jurisdiction. At that point many member states understandably want to impose a charge on any gains which have accrued whilst the assets are within their fiscal jurisdiction notwithstanding that those gains have not yet been realised (i.e. the assets have not actually been sold for valuable consideration).
Two examples of exit charges which are presently the subject of litigation before UK tribunals are:
TCGA 1992 s 80: Where the trustees of a settlement become non-UK resident s 80 deems that the trustees have disposed...
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:
