On 29 November 2011 the Court of the European Union (ECJ) published its decision in the National Grid Indus case (Case C-371/10). This case concerns exit tax rules when there is a transfer of a company’s place of effective management to a Member State other than that in which it is incorporated. Although the case concerned the Dutch taxation rules the case has potentially much wider implications – particularly on the UK migration charge rules contained in TCGA 1992 ss 185–187.
Background
National Grid Indus (NGI) a Dutch company relocated its place of effective management from the Netherlands to the UK. NGI held a sterling denominated receivable from a UK group company which showed an unrealised foreign exchange gain at the time of emigration. Under the tax treaty concluded between the Netherlands and the UK NGI’s tax...
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Home >Articles > The decision of the ECJ in National Grid Indus: is the UK migration charge contrary to EU law?
The decision of the ECJ in National Grid Indus: is the UK migration charge contrary to EU law?
On 29 November 2011 the Court of the European Union (ECJ) published its decision in the National Grid Indus case (Case C-371/10). This case concerns exit tax rules when there is a transfer of a company’s place of effective management to a Member State other than that in which it is incorporated. Although the case concerned the Dutch taxation rules the case has potentially much wider implications – particularly on the UK migration charge rules contained in TCGA 1992 ss 185–187.
Background
National Grid Indus (NGI) a Dutch company relocated its place of effective management from the Netherlands to the UK. NGI held a sterling denominated receivable from a UK group company which showed an unrealised foreign exchange gain at the time of emigration. Under the tax treaty concluded between the Netherlands and the UK NGI’s tax...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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