TC09562 - [2025] UKFTT 00762 (TC)

Case Number: TC09562

Taylor House

Appeal reference: TC/2022/13067

CORPORATION TAX – whether a company leaving a group was subject to a degrouping charge under Section 179 of the Taxation of Chargeable Gains Act 1992 in respect of the goodwill in four businesses that it had acquired intra–group within the six years before it left the group – prior to leaving the group, the company had entered into agreements with an unconnected company (with which it became connected a few days later) (the “purchaser”) under which it agreed to dispose of the goodwill and the right to carry on the businesses to the purchaser but to continue to manage the businesses as the purchaser’s agent – determination that whether or not the company continued to own the goodwill at the point when it left the group depended on whether, on a realistic view of the facts, those agreements had given rise to a disposal of the goodwill in law or in equity – concluding that, viewed realistically, the agreements did not have that effect and that the company therefore owned the goodwill when it left the group and was subject to the charge – appeal dismissed

Judgment date: 23 June 2025

Before

TRIBUNAL JUDGE TONY BEARE

Between

CURRYS RETAIL LIMITED

Appellant

and

THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS

Respondents

Representation:

For the Appellant: Mr Malcolm Gammie KC, Mr Michael Ripley, Mr Charles Brabin and Mr Edward Hellier, of counsel, instructed by Reynolds Porter Chamberlain LLP

For the Respondents: Mr John Brinsmead–Stockham KC, Ms Sarah Black and Mr Jonathan Moss, of counsel, instructed by the General Counsel and Solicitor to HM Revenue and Customs

DECISION