Group relief: ECJ decides Marks & Spencer European tax losses case | Practical Law

Group relief: ECJ decides Marks & Spencer European tax losses case | Practical Law

The ECJ has decided, in Marks & Spencer plc v David Halsey, that the UK group relief rules are largely consistent with EU principles as they apply to losses of subsidiaries in other countries. However, the rules are too restrictive in so far as they prevent the surrender of losses in circumstances where there is no possibility of relief in the country of residence of the subsidiary.

Group relief: ECJ decides Marks & Spencer European tax losses case

Practical Law UK Legal Update Case Report 3-201-7511 (Approx. 7 pages)

Group relief: ECJ decides Marks & Spencer European tax losses case

by Miles Walton, Allen & Overy
Law stated as at 15 Dec 2005United Kingdom
The ECJ has decided, in Marks & Spencer plc v David Halsey, that the UK group relief rules are largely consistent with EU principles as they apply to losses of subsidiaries in other countries. However, the rules are too restrictive in so far as they prevent the surrender of losses in circumstances where there is no possibility of relief in the country of residence of the subsidiary.