The Treasury could be forced to pay out millions of pounds following a landmark ruling allowing companies to deduct foreign losses from UK tax bills. The European Court of Justice recently ruled that Marks & Spencer could claim back losses it had made in France, in the UK.
The judgment confirmed that companies could not claim tax relief in more than one country, but that if they could not make use of losses in one member state they could offset them in another.
Our view
Great news for pan-european business development.