Q&A: Is this the end of cross-border loss relief?

Peter Cussons

On 23 October 2014 AG Kokott’s opinion was published in the Commission v UK (C-172/13) infringement case regarding the alleged unduly restrictive nature and scope of the UK’s legislation for group relief for foreign losses from 1 April 2006 intended to give effect to relief for ‘final losses’ in accordance with the decision of the CJEU in favour of Marks and Spencer PLC dated 13 December 2005 (C-446/03).

What are the Commission’s main contentions?

The Commission argued that the legislation was too restrictive in two material respects. Firstly it only applied to ‘final losses’ sustained on or after 1 April 2006.

Secondly in requiring the claimant to demonstrate that the losses were ‘final’ immediately after the end of the relevant loss period it restricted claims for unused losses to the loss...

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