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Question of location

06 March 2012
Issue: 4344 / Categories: Tax cases
Felixstowe Dock and Railway Co Ltd and others (TC 1674 and TC1674A)

The taxpayer companies were resident in the UK as members of a worldwide group, the ultimate parent that was resident in Hong Kong.

The taxpayer companies claimed consortium relief under TA 1988, s 402 and s 406 in respect of trading losses made by another UK-based member of the group, which was owned by a Luxembourg company.

HMRC refused the claim; the companies appealed.

The First-tier Tribunal referred the case to the European Court of Justice for a ruling on whether articles 49 and 54 of the Treaty of the Functioning of the EU precluded the requirement that the 'link company' was either resident in the UK or carrying on a trade in the UK through a permanent establishment located there.


Issue: 4344 / Categories: Tax cases
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