The Court of Session has granted the taxpayer leave to appeal the Upper Tribunal’s decision in Taylor Clark Leisure Plc v HMRC [2014] UKUT 396 (TCC) which considers entitlement to repayment of overpaid VAT in the context of VAT groups.

The taxpayer sought to rely on an in-time claim submitted by a former VAT group member, its own claim being out of time. The Upper Tribunal, agreeing with the First-tier Tribunal, held that section 80 of the Value Added Tax Act 1994 requires a claim for overpaid VAT to be made by the person who accounted for VAT (in the case of a VAT group, the representative member). However, the taxpayer’s appeal was dismissed as the Upper Tribunal concluded that they could not rely on the timeous claim of a former VAT group member when its own claim was out of time.