header-logo header-logo

27 April 2007 / Tim Crosley , Michael Walsh
Issue: 7270 / Categories: Features , Tax , Commercial
printer mail-detail

This is not just group relief...

How is the ECJ tackling discrimination in domestic tax systems? Tim Crosley and Michael Walsh report

On 22 February 2007 the Court of Appeal gave its ruling in the latest instalment of Marks & Spencer plc v Halsey (HM Inspector of Taxes) [2007] EWCA Civ 177, [2007] All ER (D) 232 (Feb), which has seen Marks & Spencer (M&S) litigating since 2002 for its right to claim group relief for the losses of foreign subsidiaries based in Europe.

In the UK, there is no consolidated system of taxation, meaning that each member of a group of UK companies is (as a starting point) taxed separately on its own profits. Recognising that this could be unfair where some parts of the group are doing well and some are not, the UK allows losses in one group company to be “surrendered” to another profitable group company, thus allowing the profitable company to use those losses to reduce the tax payable by it.

The rules are complex, but a basic point is that the rules did not extend to allow companies

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Gateley Legal—Jack Kelly

Gateley Legal—Jack Kelly

Gateley Legal expands Midlands residential development team

Gibson Dunn—Richard Surtees

Gibson Dunn—Richard Surtees

Gibson Dunn adds employee benefits and executive compensation practice in London with partner Richard Surtees

Laytons ETL—Alec Cameron

Laytons ETL—Alec Cameron

Laytons ETL appoints new partner and head of intellectual property disputes

NEWS
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
Employers cannot rely on wellbeing services alone to defend workplace stress claims after a High Court decision awarding almost £1m to an overworked employee
Andy Burnham's brand of 'Manchesterism' could offer fresh thinking on legal aid and access to justice if it reaches Westminster, according to Roger Smith, NLJ columnist and former director of JUSTICE
The constitutional fallout from a change of prime minister, rather than the politics, is under scrutiny as questions arise over the limits of executive authority in a leadership transition
The legal profession is undergoing a fundamental shift from selling services to creating technology-enabled products, according to Professor Luke Mason, Head of School of Law at Regent's University London
back-to-top-scroll