Market leading insight for tax experts
View online issue

Redevco Properties UK 1 Ltd v HMRC

Corporate exit charges should be payable by instalments.

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...

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:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
EDITOR'S PICKstar
Top