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FA 2013 not EU-law compliant in five areas, warns CIOT

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The CIOT has written five individual complaints to the EU Commission on what is now FA 2013 regarding the non-compliance of UK tax law with EU law. The complaints concern the following:

  • attribution of gains: the CGT provisions dealing with assets held through non UK-resident closely controlled companies remain contrary to EU fundamental principles of freedom of establishment and free movement of capital;
  • transfer of assets abroad: the rules which tax individuals in respect of assets and income transferred abroad are restrictive and disproportionate, in the sense that they go beyond what is reasonably necessary in order to prevent abuse or tax avoidance;
  • IHT: UK law remains discriminatory against individuals who are not domiciled in the UK but who are, or have been, married to, or in a civil partnership with, someone who is domiciled in the UK;
  • corporate exit charges: UK law on corporate exit charges breaches the right of freedom of establishment and is therefore discriminatory; and
  • loss relief: UK law on group relief discriminates against companies resident in other European Economic Area states with UK permanent establishments as compared with UK resident companies.