Amended claims are not new claims

In 2003 the taxpayers claimed output tax on ex-demonstrator vehicles they had sold between 1973 and 1996. They had originally accounted for VAT on the profit margin based on HMRC policy at the time. As a result of the decision in European Commission v Italian Republic (Case C-45/95) [1997] STC 1062 HMRC accepted that ex-demonstrators were exempt from VAT and motor dealers could reclaim overpaid VAT (VATA 1994 s 80).

HMRC had rejected the taxpayers’ original claims but eventually settled them by agreement under VATA 1994 s 85 based on tables published by HMRC.

Following revisions HMRC made to its tables to correct errors in 2009 the taxpayers submitted claims for additional amounts of overpaid VAT based on the revised tables.

HMRC rejected the new claims and the First-tier Tribunal dismissed the taxpayers’ appeal.

VATA 1994 s 85 provides for appeals to be settled by...