The ECJ issued its judgment on 13 December last on this case which concerned an entitlement to group relief from subsidiaries in other EU Member States.

In a detailed judgment, the ECJ has effectively recognised the right of Member States to limit tax relief claims across national boundaries, as long as these restrictions are compatible with the Treaty of Rome and further the public interest. Some restrictions in tax rules go beyond this however. In the present case a United Kingdom restriction that prohibits the use of loss relief available, where that loss relief cannot be used in the country in which it arises, was judged contrary to the freedom of establishment rules under the Treaty.

The full judgment is reproduced in this edition of tax.point in our tax case reports section.