Andrew Drysch looks at the changes to consortium relief
The principle behind the consortium relief rules which are contained within CTA 2010 Part 5 is to allow profits and losses of a consortium company to be offset against losses or profits of its members or other companies in the same group as the consortium member via a link company. The recent case of Philips Electronics UK Ltd v HMRC [2009] UKFTT 226 established however that the current rules are contrary to the EC Treaty because they only allow consortium relief to be claimed through a link company that is ‘UK related’ ie it is tax resident in the UK or trading in the UK through a permanent establishment (CTA 2010 s 134). By virtue of the Finance (No. 2) Bill 2010–11 Sch 6 para 4 consortium relief will now be available if...
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Andrew Drysch looks at the changes to consortium relief
The principle behind the consortium relief rules which are contained within CTA 2010 Part 5 is to allow profits and losses of a consortium company to be offset against losses or profits of its members or other companies in the same group as the consortium member via a link company. The recent case of Philips Electronics UK Ltd v HMRC [2009] UKFTT 226 established however that the current rules are contrary to the EC Treaty because they only allow consortium relief to be claimed through a link company that is ‘UK related’ ie it is tax resident in the UK or trading in the UK through a permanent establishment (CTA 2010 s 134). By virtue of the Finance (No. 2) Bill 2010–11 Sch 6 para 4 consortium relief will now be available if...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")