These joined appeals concern the compatibility with EU law of the UK legislation on company and trustee migrations (in particular, ss 80 and 185 TCGA 1992 and paragraph 10A of Schedule FA 1996), and whether the UK legislation requiring immediate payment of corporation tax (ss 59B and 59D TMA 1970) can be subject to a conforming construction so as to permit deferred payment of the charges, as required by the relevant CJEU jurisprudence.
Dismissing the taxpayers’ appeals, the Court of Appeal held that the legislation could be subject to a conforming construction to allow deferred payment in five equal annual instalments.
In reaching its decision, the Court confirmed that conforming construction is inevitably retrospective, accepted that the Upper Tribunal’s construction goes with the grain of the legislation, and held that it did not involve impermissible policy choices.
Ben Elliott and Stacey Cranmore acted for HMRC with Mark Fell KC.
You can read a copy of the judgment here.
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