Press Release: Corporate taxation: Commission refers the United Kingdom to the European Court of Justice over improper implementation of an ECJ ruling on cross-border loss relief

The European Commission decided to refer the United Kingdom to the European Court of Justice (ECJ) for improper implementation of the ECJ ruling in Marks & Spencer on cross-border loss relief. The relevant UK legislation imposes conditions on cross-border group loss relief which make it virtually impossible for tax payers to benefit from such relief. The relevant provisions are incompatible with the right of establishment provided for in Articles 43 and 48 of the EC Treaty and Articles 31 and 34 of the EEA Agreement.