Big British companies from the London Stock Exchange Group to broadcaster ITV are set for an unexpected £700mn windfall after the UK won an appeal against a Brussels state aid clampdown that had forced London to collect tax against its wishes. HM Revenue & Customs is refunding the companies after a September ruling reversed a 2019 decision by the European Commission that a British tax exemption for corporate groups using overseas financing companies amounted to illegal state aid.
paid £11mn to HMRC following the Commission’s 2019 decision and had a total potential exposure of up to £65mn, according to its most recent annual report, which was published before the court ruling. said it welcomed the judgment. Other beneficiaries from the ruling include ITV, the UK broadcaster, which stands to receive a tax refund of about £10mn, according to a person close to the group. ITV declined to comment on the ruling. Figures released by the Office for Budget Responsibility alongside chancellor Rachel Reeves’ October 30 Budget confirm the ruling is expected to cost the exchequer £700mn in the current tax year.