M&S victorious in Court of Appeal
Experts hail Court of Appeal decision on loss relief as significant victory for the taxpayer
Today’s Court of Appeal decision on the
Marks &
Spencer group relief case has been hailed as a major victory for
the taxpayer.
In its judgment, the court ruled that taxpayers should have more time to
establish whether losses from non-UK subsidairies can be set against UK profits.
This effectively means that a company can claim group relief as long as there is
no ‘practical possibility’ of claiming the relief in the country where it was
orginally generated.
The Justices Chadwick, Tuckey and Jacob also refused
HM Revenue &
Customs leave to appeal. HMRC will now have to apply to the House
of Lords appeals committee if it is to have any hope of taking the case further.
PricewaterhouseCoopers
international tax partner Peter Cussons said the judgment was a welcome one
for the taxpayer.
‘This has been a long, drawn-out case, but there is a sense that this may be
the final aria,’ Cussons said.
Further reading:
Court of Appeal decision on M&S due today