In Littlewoods, the High Court awarded compound interest on overpaid VAT based on government borrowing rates; however, it noted that the circumstances were exceptional given the length of time and high prevailing interest rates during the period in question. In British Telecommunications, the Court of Appeal held that BT’s bad debt relief claims for the period before 1 April 1989 were time barred. In MG and Standard Chartered, two differently constituted FTTs handed down conflicting decisions on the ability of companies to reclaim overpaid VAT once they have left a VAT group. VAT Information Sheet 03/14 provides helpful guidance on new rules relating to manufacturers’ refunds to final consumers.
