Too late to claim

The taxpayer company operated business and leisure facilities in England and Scotland. It transferred its bingo halls cinemas and multiuse complexes and assets in April 1990 to a wholly owned subsidiary Carlton.

The taxpayer was the representative member of the VAT group between 1973 and 2009 and Carlton was a member from 1990 to 1998.

Taylor Clark over-declared output tax from 1973 to 1998 on the basis income from some gaming and bingo machines and from main stage bingo for cash prizes was not VAT-exempt.

The decision in Fleming t/a Bodycraft v CRC [2008] STC 324 meant claims for output tax overpaid in accounting periods ending before 4 December 2006 could be made until 31 March 2009 – before which Carlton made four claims.

HMRC processed the first claim to Carlton but made the repayment to the taxpayer. The department issued assessments to recover the repaid...