The Upper Tribunal (UT) decided that a request should be made to the CJEU for a preliminary ruling in relation to matters concerning the UK's tax legislation on disposals of assets between members of the same group of companies.
A company (G) appealed against two partial closure notices issued by HMRC in relation to its 2011 and 2014 accounting periods. The 2011 appeal related to HMRC's conclusion that G was liable to pay corporation tax on gains from the transfer of certain intellectual property rights relating to tobacco brands and related assets to a group member resident in Switzerland for tax purposes.
The 2014 appeal related to HMRC's conclusion that G was liable to pay corporation tax on gains arising on the transfer of shares in its subsidiary company ('Galleon') to the indirect parent company of G, which was tax resident in the Netherlands.
The relevant provisions of UK domestic legislation applicable to