Brexit effect

Reference to the Court of Justice of the EU

The taxpayers were the trustees of the British Coal Staff Superannuation Scheme. They claimed repayment of withholding tax on manufactured overseas dividends (MODs) which were exempt from UK tax.

HMRC refused the claims. The First-tier Tribunal dismissed the trustees’ appeal so the matter progressed to the Upper Tribunal. The trustees considered the refusal to pay was a restriction on the free movement of capital. They applied to the tribunal for an immediate reference to the Court of Justice of the EU (ECJ). It was unusual for the Upper Tribunal to make a reference but there was some urgency because the UK had served notice to leave the EU which would result in the ECJ no longer having jurisdiction in the UK.

The Upper Tribunal said it was not appropriate to make a reference to the ECJ. This was because it...