Case: recovery of advance corporation tax settled in Prudential

The case of Prudential Assurance Co Ltd and Ors v R & C Commissioners [2013] EWHC 3249 (Ch) follows on from a previous case, Test Claimants in the CFC and Dividend Group Litigation v Revenue and Customs Commissioners [2010] EWHC 2811 (Ch), [2011] STC 214. The issue of the lawfulness of Schedule D Case V charge to corporation tax under the Income and Corporation Taxes Act 1988 (which in essence relates to income arising from possessions out of the UK, except from any office or employment) remained in dispute. Prudential argued that the non-portfolio dividends paid by a subsidiary resident in an EU member state to its UK-resident parent should not have been charged with the tax.