Ten year appeal concerning bad debt relief

In 2009 British Telecommunications plc claimed a repayment of overpaid VAT under the bad debt relief scheme or under VATA 1994 s 80. HMRC refused.

BT appealed. On 30 June it issued a claim in restitution in the Chancery Division as a protective fall-back claim in case the First-tier Tribunal held that the statutory appeal was invalid. A consent order was made ordering that the claim be stayed until 56 days after the determination of the VAT appeal or 30 days after final determination of any appeal from the First-tier Tribunal.

Preliminary matters relating to EU time limits had first to be heard in the Upper Tribunal. This held that FA 1997 s 39(5) had to be disapplied to give effect to EU law so that BT's bad debt relief claim was not barred. It ruled that the claim did not fall within VATA 1994 ...