Consortium relief

Michael Anderson

The applicants in The Felixstowe Dock and Railway Company & Others v HMRC [2011] UKFTT 838 were UK resident companies in the Hutchison Whampoa group whose ultimate parent was resident in Hong Kong.

They had claimed consortium relief for losses in the joint venture Hutchison 3G UK Limited (3G) which was part owned by the Hutchison group through a Luxembourg resident link company.

The case involved questions both on the EU freedom of establishment (which have been referred to the CJEU for a preliminary ruling) and on the applicability of the non-discrimination article in the UK/Luxembourg Double Taxation Convention (DTC).

The question for the CJEU is of general interest to non-EU parented groups. HMRC appears to argue that a company resident in the EU is not protected by the freedom of establishment where...

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