Posted: 14 October 2009
Issue: Vol 164, Issue 4227
Categories: Tax cases, CT: European Law, Legal, CT

Philips Electronics UK Ltd (TC 176)

The taxpayer company, resident in the UK, claimed consortium relief for the years 2001 to 2004 in relation to the losses of a UK branch of an associated Netherlands company.

HMRC refused the claims on the ground that TA 1988, s 403D and s 406(2) prevented the losses of a UK branch of a non-resident company being surrendered if part of the losses is deductible abroad.

The company appealed, contending that the provisions infringed EU law.
The First-tier Tribunal judges agreed that both s 403D and s 406(2) contravened EU law and therefore should not be used to prevent consortium relief being available.

The taxpayer company’s appeal was allowed.

Philips Electronics UK Ltd (TC 176)

 

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