HMRC victory in Test Claimants in the Thin Cap Group Litigation (Court of Appeal) | Practical Law

HMRC victory in Test Claimants in the Thin Cap Group Litigation (Court of Appeal) | Practical Law

The Court of Appeal has decided by a majority that the UK's thin capitalisation rules (as they applied before 2004) did not infringe the right to freedom of establishment as the "arm's length" test alone satisfied the need for taxpayers to be permitted to show commercial justification for their transactions. (Test Claimants in the Thin Cap Group Litigation v HMRC [2011] EWCA Civ 127.)

HMRC victory in Test Claimants in the Thin Cap Group Litigation (Court of Appeal)

Practical Law UK Legal Update 4-504-8716 (Approx. 9 pages)

HMRC victory in Test Claimants in the Thin Cap Group Litigation (Court of Appeal)

by PLC Tax
Published on 22 Feb 2011 • European Union
The Court of Appeal has decided by a majority that the UK's thin capitalisation rules (as they applied before 2004) did not infringe the right to freedom of establishment as the "arm's length" test alone satisfied the need for taxpayers to be permitted to show commercial justification for their transactions. (Test Claimants in the Thin Cap Group Litigation v HMRC [2011] EWCA Civ 127.)