Down, But Not Out

IN A DECISION that surprised many the Special Commissioners on 31 December 2002 delivered their eagerly awaited decision in Marks & Spencer plc v Halsey also known as the group relief case in favour of the Inland Revenue.

Many had expected the case to be referred to the European Court of Justice. The surprising element was that the Special Commissioners felt confident enough in their analysis of European Union law that they did not need to refer it.

Marks & Spencer is understood to be considering an appeal.

Background

The overseas expansion of Marks & Spencer and subsequent withdrawal from continental Europe are well documented. Marks & Spencer was left in the position that it obtained no tax relief for the losses of its European subsidiaries.

Marks & Spencer submitted group relief claims for the years ended 31 March 1998 1999 ...