Mike Lane and Zoe Andrews (Slaughter and May) provide your monthly update on tax developments affecting the City.
Farnborough Airport: degrouping and the control test
Farnborough AirportProperties and another v HMRC [2019] EWCA Civ 118 concerns HMRC’s refusal to allow £10.5m of group relief because of the appointment of a receiver over the surrendering company. Group relief surrenders cannot be made at a time when there are arrangements in place whereby the relevant group relationship could be broken (CTA 2010 s 154 onwards). An intermediate parent company Kelucia had indirect control of the claimant companies and the surrendering company before the appointment of the receiver. The question was whether Kelucia still had the requisite control after the appointment of the receiver.
The Court of Appeal unanimously agreed with the Upper Tribunal (UT) and the First-tier Tribunal (FTT) that group relief should be denied. Section 154 applied to deny group relief because...
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Mike Lane and Zoe Andrews (Slaughter and May) provide your monthly update on tax developments affecting the City.
Farnborough Airport: degrouping and the control test
Farnborough AirportProperties and another v HMRC [2019] EWCA Civ 118 concerns HMRC’s refusal to allow £10.5m of group relief because of the appointment of a receiver over the surrendering company. Group relief surrenders cannot be made at a time when there are arrangements in place whereby the relevant group relationship could be broken (CTA 2010 s 154 onwards). An intermediate parent company Kelucia had indirect control of the claimant companies and the surrendering company before the appointment of the receiver. The question was whether Kelucia still had the requisite control after the appointment of the receiver.
The Court of Appeal unanimously agreed with the Upper Tribunal (UT) and the First-tier Tribunal (FTT) that group relief should be denied. Section 154 applied to deny group relief because...
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:
