FTSE 250 Cobham in £70m one-off tax payment
FTSE 250 aerospace and defence company Cobham has agreed to make a one-off tax payment of £55m, plus an interest payment of £14m, to settle a long running dispute with HMRC
16 May 2019
The dispute relates to the availability of interest deductions on one of the group's internal financing structures, which was in place between 2008 and 2014.
The company said its payments, which are in line with its previous briefings to the market on the likely amount, will ‘finally settle the group's exposure to this matter’.
Separately, Cobham has also revealed it may potentially be liable for another tax payment in the future relating to European Commission state aid investigations.
In April 2019, the Commission’s final decision on the UK government's controlled foreign company regime ruled that it partially represents state aid. Cobham pointed out that the UK government has not yet announced how it would identify and seek to recover state aid, and estimates it could have additional tax payable of between no liability and approximately £60m.