In Redevco Properties UK 1 Ltd v HMRC [2023] UKFTT 665 (TC) (21 July 2023) the FTT held that a company which became non-UK resident was subject to exit charges applying a conforming interpretation to legislation which it was agreed was incompatible with EU law. The result was that the company would pay the tax in five annual instalments.
In 2008 the company a member of a Dutch group ceased to be resident in the UK for corporation tax purposes and became resident in the Netherlands. Following an enquiry HMRC issued a closure notice incorporating exit charges under the capital gains and loan relationships codes giving rise to additional profits for the accounting period in which the company ceased to be UK resident of £140m. The company appealed.
Both parties accepted that the exit charges when...
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In Redevco Properties UK 1 Ltd v HMRC [2023] UKFTT 665 (TC) (21 July 2023) the FTT held that a company which became non-UK resident was subject to exit charges applying a conforming interpretation to legislation which it was agreed was incompatible with EU law. The result was that the company would pay the tax in five annual instalments.
In 2008 the company a member of a Dutch group ceased to be resident in the UK for corporation tax purposes and became resident in the Netherlands. Following an enquiry HMRC issued a closure notice incorporating exit charges under the capital gains and loan relationships codes giving rise to additional profits for the accounting period in which the company ceased to be UK resident of £140m. The company appealed.
Both parties accepted that the exit charges when...
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