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European Commission requests UK to amend anti-avoidance legislation

Lyle

Background

The European Union’s single market is designed to eliminate restrictions between member countries and two fundamental principles of this are ‘the free movement of capital’ and ‘the freedom of establishment’. The EC has reviewed two areas of the UK’s anti-avoidance legislation and sent a reasoned opinion to the UK which concludes that that these provisions do not comply with these principles. The implications of the Commission’s findings are wide-reaching and the UK has two months to respond. We will keep you informed of developments in this area.

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