09 August 2023

Redevco Properties UK 1 Limited v HMRC

The FTT has released it decision in the case of Redevco Properties UK 1 Limited v HMRC

The appeal concerns the compatibility of the UK legislation on company migrations (in particular, s185 TCGA 1992 and paragraph 10A schedule FA 1996) with EU law and whether the UK legislation requiring immediate payment of corporation tax (s59D TMA 1970) could be subject to a conforming construction to permit deferred payment of the charges (as required by the relevant CJEU jurisprudence) or should alternatively be disapplied. Dismissing the appeal, the Tribunal has followed the decision in Panayi and held that the legislation can be subject to a conforming construction such that, where the taxpayer’s right of freedom of establishment would otherwise be infringed, payment of corporation tax may be made in five equal annual instalments following the end of the relevant accounting period.

Ben Elliott represented HMRC.

To view a copy of the decision, please click here