In Gallaher Ltd v HMRC [2020] UKUT 354 (TCC) (14 December 2020) the UT referred questions to the CJEU concerning the UK’s ‘group transfer rules’ on intra-group disposals of assets (TCGA 1992 s 171 and for intangible assets CTA 2009 ss 775 776).
The appeals related to two disposals by a UK-resident company to members of its group. The first in 2011 was a disposal of some brands to a Swiss company. The second in 2014 was a disposal of shares to the company’s Dutch indirect parent company. The group transfer rules provide that there is no immediate tax charge on an intra-group disposal but only if the assets remain within the UK tax net. As the disposals here were to a Swiss and a Dutch company the reliefs were not available. The taxpayer argued that this was an unjustified...
