In a landmark judgment handed down by the UK’s highest appeal court, the House of Lords, on July 18 (published on August 6), held that compound interest is recoverable in claims for restitution. The Court found that the UK Inland Revenue had been unjustly enriched by the mistaken payment to it by Sempra Metals Limited (Sempra) of corporation tax when the tax had been levied prematurely. The House of Lords observed that the restrictive rule against recovery of compound interest was out of step with present day economic reality. It is expected that the English courts will in future enable successful claimants to recover compound interest in a wider variety of circumstances.