Effect of changes

Claims to recover input tax

On 30 March 2009 the NHS Greater Glasgow and Clyde Health Board submitted a Fleming claim to recover input tax on business activities during the period 1974 to 1997. It later amended the claims including a reduction in the period from 23 to 20 years. HMRC said the changes had resulted in new and different claims that were time-barred. The First-tier Tribunal agreed with HMRC but the taxpayer appealed.

The Upper Tribunal rejected the taxpayer’s contention that it had been ‘left in the dark’ as to the basis of the earlier decision. The judge said the First-tier Tribunal had made it clear that it considered that the taxpayer’s reliance on only four years of accounting figures ‘bunched in the middle of the 20-year period’ and with extrapolation using the retail prices index did not comply with VAT Regulations SI 1995/2518 reg 37. The tribunal...