A First Tier Tribunal has recently held in this case (Gallaher Ltd v Commissioners for HMRC [2019] UKFTT 0207 (TC)) that the imposition of an immediate corporation tax liability on capital gains on a transfer of assets by a UK company to its Dutch parent company, denying the no gain / no loss treatment available (under s171 TCGA 1992) to transfers within a UK group, is a disproportionate measure that violates the EU right to freedom of establishment.
In this short video, PwC specialists Jonathan Hare and Juliet Trent discuss the decision and what it means for taxpayers.
As this is an FTT decision, it is expected it will be appealed and we will update you on developments.