EU rules on UK Non-Resident Close Company Legislation
The Court of Justice of the European Union (CJEU) issued its judgement on the UK tax legislation concerning the attribution of gains to participators in non-resident “close” companies.
The UK tax legislation provided for a difference in treatment between domestic and cross-border activities (section 13 of the Taxation of the Chargeable Gains Act 1992, prior to the introduction of the business activity exemption introduced by Finance Act 2012) which the CJEU held to be contrary to Free Movement of Capital (Article 63 of TFEU). The judgement is published on the Cuira website.
The CJEU judgement is likely to have implications for Ireland as similar tax treatment is provided for in section 590 of the Taxes Consolidation Act 1997.