Our Knowledge

On 13 December 2005, the European Court of Justice ("ECJ") ruled that Marks and Spencer plc ("M&S") could claim group tax relief from UK tax authorities in relation to the losses incurred by its European subsidiaries.

The Civil Partnership Act 2004 came into force on 5 December 2005 amid significant publicity, not to mention celebrity. Civil partnership provides a means of legal equalisation for same-sex couples, giving legal recognition to partners of the same sex, who want to enter into long-term interdependent relationships.  The change in the law has implications for property transactions, as well as tax, inheritance and succession, pensions, social security and family law.

The Fire (Scotland) Act 2005 deals with the law relating to fire prevention and safety, replacing old legislation, and modernising the operation of the Fire and Rescue Service. Those parts of the Act that relate to the powers and duties of the Fire and Rescue Service came into force in August this year, but of more direct relevance in commercial terms is Part 3 of the Act, originally planned to come into force next spring, but which will not now take effect until October 2006 at the earliest.

The English High Court has recently held that no liability arises to repay unlawful dividends unless the member receiving the dividend knew or had reasonable grounds to believe that such payment was being made in contravention of the Companies Act 1985.  An insolvent company claimed repayment of dividends unlawfully paid to the defendants who were the only shareholders and directors of the company.  The liquidators of the company argued on its behalf that the dividends had not been paid from "profits available for the purpose" and therefore were in breach of the Companies Act.  The defendan