The company sought repayment by way of restitution for overpaid taxes. The tax had been repaid, but only as simple interest, and not compounded. Both parties now appealed from a decision that the Act did not apply to exclude under sections 78 and 80 of the 1994 Act.
Held: Littlewoods’ claims ere excluded by sections 78 and 80 of the 1994 Act, as a matter of English law and without reference to EU law.
The critical words in section 78(1) concern liabilities to pay ‘interest’. In their view, it was a strained use of language to describe a liability to make restitution for the time value of money as a liability to pay interest, even if the relief was calculated by reference to interest rates (para 45).
[2015] EWCA Civ 515, [2015] WLR(D) 228, [2015] BVC 26, [2015] STI 1791, [2015] 3 WLR 1748, [2016] Ch 373, [2015] STC 2014, [2015] STC 2384
Bailii, WLRD
Value Added Tax Act 1994 94
England and Wales
Citing:
Appeal from – Littlewoods Retail Ltd and Others v HM Revenue and Customs (No 2) ChD 28-Mar-2014
The claimants had recovered very substantial overpayments made of VAT. They sought recovery of compound interest. The ECJ, on reference, said that this was a matter for national law.
Held: The claim succeeded. The sections of the 1994 Act were . .
Criticised – FJ Chalke Ltd and Another v Revenue and Customs ChD 8-May-2009
The court was asked as to the effectiveness under European law of sections 78 and 80 of the 1994 Act.
Held: Henderson J focused on the fact that section 80(7) excludes any common law liability to repay the overpaid VAT, and inferred that it . .
Cited by:
Appeal from (CA) – Littlewoods Ltd and Others v Commissioners for Her Majesty’s Revenue and Customs SC 1-Nov-2017
The appellants had overpaid under a mistake of law very substantial sums in VAT over several years. The excess had been repaid, but with simple interest and not compound interest, which the now claimed (together with other taxpayers amounting to 17 . .
Cited – Prudential Assurance Company Ltd v Revenue and Customs SC 25-Jul-2018
PAC sought to recover excess advance corporation tax paid under a UK system contrary to EU law. It was now agreed that some was repayable but now the quantum. Five issues separated the parties.
Issue I: does EU law require the tax credit to be . .
Lists of cited by and citing cases may be incomplete.
Updated: 10 August 2021; Ref: scu.547012
