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)
