Case Law

Sainsbury plc v O’Connor (Inspector of Taxes) 1991 STC 318 considered the nature of beneficial ownership. The grant of a call option did not result in the loss of beneficial ownership, as long as the registered owner of the shares retained all the normal benefits associated with share ownership, in particular the right to receive dividends during the option period.

In Algemene Maatschappij voor Investering en Dienstverlening NV v Belgian State 2003 STC 356 the ECJ ruled that it was in contravention of the Freedom of Establishment principle of the EC Treaty to apply a different loss treatment to Belgian residents with a foreign permanent establishment to that afforded to a Belgian company operating solely in Belgium.