The Supreme Court has granted each party leave to appeal against the decision of the Court of Appeal in the case of Investment Trust Companies (in liquidation) v HMRC1 which considers rights and remedies for unlawfully charged VAT.
In February 2015, the Court of Appeal concluded that the investment trusts had a direct remedy against HMRC and that the capping provisions contained within section 80, Value Added Tax Act 1994, did not apply to the trusts’ restitutionary claims. However, the court decided that those claims did not include netted-off input VAT, which must be claimed from the supplier.
The Supreme Court will now decide whether any sums payable to the trusts should take account of input VAT claimed by the managers at the time they accounted for VAT on fees charged to the trusts, and what time limit applies to the claims.
A copy of the Court of Appeal’s decision is available to read here.