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The decision of the ECJ in National Grid Indus: is the UK migration charge contrary to EU law?

On 29 November 2011 the Court of the European Union (ECJ) published its decision in the National Grid Indus case (Case C-371/10). This case concerns exit tax rules when there is a transfer of a company’s place of effective management to a Member State other than that in which it is incorporated. Although the case concerned the Dutch taxation rules the case has potentially much wider implications – particularly on the UK migration charge rules contained in TCGA 1992 ss 185–187.


National Grid Indus (NGI) a Dutch company relocated its place of effective management from the Netherlands to the UK. NGI held a sterling denominated receivable from a UK group company which showed an unrealised foreign exchange gain at the time of emigration. Under the tax treaty concluded between the Netherlands and the UK NGI’s tax residency...

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