Following the decision in Wilkinson, Tony Beare argues for a re-examination of the current rules regarding the surrender of consortium relief in certain circumstances.
Consortium relief is in the news at present as a result of the recent decision in the Felixstowe case (C‑80/12). That case related to the validity under European law of one of the qualifying conditions for consortium relief – a condition which has subsequently been amended. Another qualifying condition which remains in place and which is hard to understand from the policy perspective allows for only a single holding company between the consortium members and the trading company in which they have an interest. There is no logical reason why the relief should be limited in this manner.
Another aspect of the consortium relief rules which is ripe for scrutiny...
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