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Customs have recently published a Business Brief concerning the consequence of the High Court's decision in University of Sussex v Commissioners of Customs and Excise [2001] STC 149 on claims affected by the three-year cap (see section 80(4), VAT Act 1994).
Customs have recently published a Business Brief concerning the consequence of the High Court's decision in University of Sussex v Commissioners of Customs and Excise [2001] STC 149 on claims affected by the three-year cap (see section 80(4), VAT Act 1994).
In its decision, the High Court held that a claim for input tax not claimed previously is not one made under section 80, but under Regulation 29 of the VAT Regulations 1995. As claims made under Regulation 29 were not capped until 1 May 1997, the university's claim is payable in full.
Customs are appealing the decision in the Court of Appeal, but taxpayers in a similar position to the University of Sussex may want to lodge claims for repayment of amounts previously claimed and capped.
If a late claim to input tax has been made, and that claim was:
* still unsettled on 18 July 1996; or
* made between 18 July 1996 and 30 April 1997; and
* capped under the provisions of section 80(4), VAT Act 1994,
the claimant should write to the VAT office, referring to Business Brief 4/2002, and enclosing the following:
* a copy of the original claim;
* copies of documents, schedules, etc. used in support of the original application; and
* copies of letters from Customs in connection with the claim.
Interest may also be claimed on any sums to be repaid on the basis of the University of Sussex decision, which were previously refused.
Customs will only pay claims in advance of publication of the Appeal Court's decision if applicants agree, in writing, to repay the money to Customs, with interest, in the event that the High Court's decision is overturned. Alternatively, claimants may prefer to wait until the case, which is listed for hearing before the Court of Appeal on 28 to 31 May 2002, is finally decided before seeking payment of their claims.
The Business Brief also contained an article on the proposed phased introduction of the aggregates levy in Northern Ireland.
(Source: Customs Business Brief 4/2002 dated 22 February 2002.)
