Legal Challengers to U.K. Tax Penalty Plan to Rely on EU Law

A group is planning to bring challenges to a U.K. anti-tax avoidance measure arguing that it is in breach of EU law, the group said Tuesday.

The loan charge, as it is known, will push thousands of taxpayers into bankruptcy and many will have to sell their homes to pay it, the group, known as Loan Charge Judicial Review EU, said in a news release.

The group said it would argue in both England and Scotland that the penalty undermines the EU’s fundamental right of “freedom of movement of capital.” The U.K. remains subject to EU law ...