Lee Squires and Fiona Bantock (Hogan Lovells) report the latest VAT developments that matter.
Littlewoods: compound interest
The Supreme Court has finally given judgment in the long-running Littlewoods case on whether there is an entitlement to compound interest on overpaid VAT (Littlewoods v HMRC [2017] UKSC 70 reported in Tax Journal 10 November 2017).
As most readers will know Littlewoods overpaid VAT for the period from 1973 to 2004 as a result of an incorrect understanding of VAT law. HMRC repaid the overpaid VAT and paid interest on a simple basis under VATA 1994 s 78. However Littlewoods brought a common law claim in restitution before the High Court seeking interest on a compounded basis. Following a reference to the CJEU (which held that the rules on interest should not deprive Littlewoods of an ‘adequate indemnity’ for its loss caused by the undue payment of VAT) the High Court...
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Lee Squires and Fiona Bantock (Hogan Lovells) report the latest VAT developments that matter.
Littlewoods: compound interest
The Supreme Court has finally given judgment in the long-running Littlewoods case on whether there is an entitlement to compound interest on overpaid VAT (Littlewoods v HMRC [2017] UKSC 70 reported in Tax Journal 10 November 2017).
As most readers will know Littlewoods overpaid VAT for the period from 1973 to 2004 as a result of an incorrect understanding of VAT law. HMRC repaid the overpaid VAT and paid interest on a simple basis under VATA 1994 s 78. However Littlewoods brought a common law claim in restitution before the High Court seeking interest on a compounded basis. Following a reference to the CJEU (which held that the rules on interest should not deprive Littlewoods of an ‘adequate indemnity’ for its loss caused by the undue payment of VAT) the High Court...
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