FCE Bank case – Court of Appeal holds UK's former group relief rules in breach of treaty non-discrimination article

On 17 October 2012, the Court of Appeal dismissed HMRC's appeal in CRC v FCE Bank Plc.
(a) Facts and legal background
HMRC had appealed against a decision from the Upper Tribunal that the UK's pre-2000 group relief rules breached the non-discrimination article in the United Kingdom - United States Income Tax Treaty (1975).
The Upper Tribunal's decision itself upheld that of the First Tier Tribunal.
The domestic tax rules at issue provided for the surrender of losses between tw…