The European Commission’s state aid decision on the finance company exemption within the UK’s CFC regime was published in the EU Official Journal on 20 August 2019. Taxpayer companies have also been bringing applications to annul the decision, in order to protect their positions fully, and now have until 13 November 2019 to do so.
The Commission announced in April that the exemptions were partially justified under state aid rules and required the UK to recover all illegal state aid within four months. It concluded that the finance company exemption constituted state aid when applied to non-trading finance profits from qualifying loan relationships falling within TIOPA 2010, s371EB (UK activities). It did not constitute state aid when applied to profits falling within TIOPA 2010, s371EC (capital investments from the UK).
The UK government filed its annulment application with the EU General Court on 12 June (bit.ly/2PjUtHv). The four pleas in law for the UK’s application for annulment were:
See details in the European Commission register of state aid cases (SA.44896) bit.ly/2NAMByL.
The European Commission’s state aid decision on the finance company exemption within the UK’s CFC regime was published in the EU Official Journal on 20 August 2019. Taxpayer companies have also been bringing applications to annul the decision, in order to protect their positions fully, and now have until 13 November 2019 to do so.
The Commission announced in April that the exemptions were partially justified under state aid rules and required the UK to recover all illegal state aid within four months. It concluded that the finance company exemption constituted state aid when applied to non-trading finance profits from qualifying loan relationships falling within TIOPA 2010, s371EB (UK activities). It did not constitute state aid when applied to profits falling within TIOPA 2010, s371EC (capital investments from the UK).
The UK government filed its annulment application with the EU General Court on 12 June (bit.ly/2PjUtHv). The four pleas in law for the UK’s application for annulment were:
See details in the European Commission register of state aid cases (SA.44896) bit.ly/2NAMByL.