Parallel claims have been brought in the High Court and statutory tribunal to establish whether compound interest is available for VAT claims and through which jurisdiction. Both sets of claims failed at first instance in 2009. The High Court concluded that compound interest was available but that the claims were out of time. The Upper Tribunal held that there was no statutory entitlement to compound interest and, in any event, those claims were also out of time.

Both sets have been appealed to the Court of Appeal. The appeal in the High Court claims was heard in January with the parties proposing references to the ECJ. A decision is awaited. The other proceedings have yet to be heard

Until we receive a judgment, the most prudent course of action remains to issue claims in both jurisdictions and stay the claims until the litigation has been resolved.