EU threatens Britain with court action if it fails to align with their income tax rules

Euro coins
Euro coins.

On Thursday, the European Commission said the UK could face court action if it fails to align with EU law’s income tax rules concerning tax relief for losses resulting from the sales of shares.

At the moment, It is only shares in companies which carry out their business activities predominantly in the United Kingdom that can qualify for the relief. 

Giving Britain two months to reply, the EU executive said: “This rule puts taxpayers who invest in qualifying shares of companies which carry out their business in other EU member states than the United Kingdom at a disadvantage. It also imposes a restriction on the free movement of capital.”

Leave a Reply