Eastern Power Networks plc and others v HMRC

In Eastern Power Networks plc and others v HMRC [2025] UKFTT 703 (TC) (10 June) the First-tier Tribunal (FTT) held that when determining the ownership proportion for the purposes of consortium relief the entitlement of multiple link companies must be assessed collectively not by aggregating individual entitlements. Additionally it ruled that a corporate structure designed to enhance consortium relief entitlements constituted a scheme with a main purpose of obtaining a tax advantage.  

The taxpayer companies were as a result of a 2010 acquisition wholly-owned subsidiaries of UK Power Networks Holdings Ltd (UKPNH). UKPNH was a consortium company within the UK Power Networks group. The taxpayer companies had made claims for consortium relief from surrendering companies with available losses with those companies being part of a different corporate group (HW). The taxpayers sought...