Two weeks to 2 May 2019
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
First Tier Tribunal rules UK’s intra-group transfer rules (s171 TCGA) violate EU law
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.
Update to HMRC’s hybrid capital instruments technical note
This technical note from HMRC, which concerns the taxation of regulatory capital, has been updated. The new paragraph 2.4 explains the Government’s intention to amend legislation introduced in Finance Act 2019, to address concerns about the way it applies to instruments with a takeover or change of control provision.
BREXIT from a transfer pricing lens - podcast
In this podcast, Loic Webb-Martin (Transfer Pricing Partner), Susan Edwards (Transfer Pricing Director), and Steven Brown (Transfer Pricing Senior Manager) provide insights on BREXIT from a transfer pricing perspective. Among other topics, they discuss long-term TP consequences of BREXIT restructuring, VAT considerations, and possible controversy solutions.
