Foreign tax losses can be accounted for

Foreign tax losses can be accounted for

ECJ rules that foreign losses can be used to offset tax

European Union tax authorities must take into account financial losses
incurred by taxpayers in a foreign EU member state, the European Court of
Justice has ruled.

Judges said Germany broke European rules guaranteeing the freedom of movement
of EU citizens between member states by refusing to allow a German couple
working in Germany to claim financial losses associated with living in a house
in France, rather than renting it out. Such housing costs can be legitimately
set against tax if the home is in Germany.

The court said EU law ‘precludes national legislation’ that prevents EU
citizens working in their home country from having ‘income losses relating to
their own use of a private dwelling in another member state to be taken into
account’ when assessing taxation. ‘Unfavourable treatment of non-resident
taxpayers is not justified’ in this way,’ it added.

Related Articles

Paul Morton, Tax Director, Office of Tax Simplification

Administration Paul Morton, Tax Director, Office of Tax Simplification

6m Emma Smith, Managing Editor
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

7m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

8m Emma Smith, Managing Editor
HMRC issues updated Trusts Registration Service guidance

Administration HMRC issues updated Trusts Registration Service guidance

8m Emma Smith, Managing Editor
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

9m Emma Rawson, ATT Technical Officer
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

10m Austin Clark, Reporter
Are you ready for the Trusts Registration Service?

Administration Are you ready for the Trusts Registration Service?

10m Helen Thornley, ATT Technical Officer
Advisers bullish despite Brexit concerns

Accounting Standards Advisers bullish despite Brexit concerns

2y Fraser Simpson, Reporter