Gary Barnett and Bryn Reynolds (Simmons & Simmons) review the recent FTT decision in HBOS and Lloyds Banking on VAT overpayment interest owing following a legislative error, among other developments.
Interest where official error
In HBOS plc and Lloyds Banking Group v HMRC[2023] UKUT 13 the Upper Tribunal (UT) has held that the failure to correctly transpose the VAT Directive in relation to bad debt relief claims was an ‘error on the part of the Commissioners’ for the purposes of VATA 1994 s 78. As such the taxpayers were entitled to the payment of interest under s.78 from the time when they would otherwise have made claims rather than when bad debt relief claims were made and wrongly rejected by HMRC.
The UK’s bad debt relief regime was held to be invalid by the ECJ in GMAC UK v HMRC [2016] EWCA 1015 as it included a condition that on...
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Gary Barnett and Bryn Reynolds (Simmons & Simmons) review the recent FTT decision in HBOS and Lloyds Banking on VAT overpayment interest owing following a legislative error, among other developments.
Interest where official error
In HBOS plc and Lloyds Banking Group v HMRC[2023] UKUT 13 the Upper Tribunal (UT) has held that the failure to correctly transpose the VAT Directive in relation to bad debt relief claims was an ‘error on the part of the Commissioners’ for the purposes of VATA 1994 s 78. As such the taxpayers were entitled to the payment of interest under s.78 from the time when they would otherwise have made claims rather than when bad debt relief claims were made and wrongly rejected by HMRC.
The UK’s bad debt relief regime was held to be invalid by the ECJ in GMAC UK v HMRC [2016] EWCA 1015 as it included a condition that on...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
