ICI Plc v Colmer (Inspector of Taxes)

The judgment concerns whether consortium relief under section 258 of the Income and Corporation Taxes Act 1970 is available where a holding company owned by a consortium has subsidiaries some of which are not bodies corporate resident in the United Kingdom, and whether the interpretation of the domestic statute is affected by the freedom of establishment provisions of the Treaty of Rome (Articles 52, 56 and 58) as implemented by section 2 of the European Communities Act 1972.

The supplied text does not record the court's operative decision or the detailed reasoning and grounds for that decision.

Background and issues:

• The dispute arose in the context of corporation tax relief: in particular, the availability of consortium relief (group relief) under section 258 of the Income and Corporation Taxes Act 1970 where the corporate group included companies not resident in the United Kingdom.
• The court was invited to consider whether the correct statutory construction of section 258 should be influenced by the freedom of establishment in Articles 52, 56 and 58 of the Treaty of Rome and the implementation of Community law under section 2 of the European Communities Act 1972.

Procedural posture:

Not stated in the judgment.

Nature of relief sought:

Not stated in the judgment.

Issues framed by the court:

• Whether consortium relief under section 258 ICTA 1970 is available to the taxpayer given the residency status of certain subsidiaries.
• Whether Community law (freedom of establishment) required a particular interpretation of the domestic statutory provision.

Court's reasoning and conclusion:

Not stated in the judgment.