Upper Tribunal Tax and Chancery Chamber

UT-2024-000123 - [2025] UKUT 00360 (TCC)

Fecha: 19-Jun-2025

Conclusions

Conclusion

139.

For the reasons set out above, we allow HMRC’s appeal in relation to its Ground 1 and set aside the FTT’s decision on this Ground and remake it on the basis that (i) the Company’s applications for further interest in relation to the appeals listed at 9-17, 21-22 and 25-27(1) of the Appendices are dismissed, and (ii) the Company’s applications for further interest in relation to the appeals listed at lines 18-20, 23-24 and 27 (2) are dismissed.

140.

The Company’s appeal is dismissed on all Grounds.

Costs

141.

Any application for costs in relation to this appeal must be made in writing and served on the Tribunal and the person against whom it is made within one month after the date of release of this decision as required by rule 10(5)(a) and (6) of the Tribunal Procedure (Upper Tribunal) Rules 2008.

JUDGE GUY BRANNAN

JUDGE JENNIFER DEAN

UPPER TRIBUNAL JUDGES

Release date: 22 October 2025

APPENDIX 1

	Appeal Reference	Type of Appeal	Consolidated to:	Assessment or Section 80 claim?	Date of assessment or claim	Date of rejection	Date of appeal	VAT periods covered	VAT paid	Date repaid	Gross Interest claimed	Interest paid	Net interest claimed
1	LON/2001/1203	Contents	LON/2000/0765	Assessment	3.7.01 23.10.01		14.11.01	03/01 06/01	£199,362.52	15/12/14	£135,412.81	£58,232.54	£77,180.27
2	LON/2002/0112	Contents	LON/2000/0765	Assessment	31.12.01		8.2.02	09/01	£99,681.26	15/12/14	£64,740.38	£27,566.43	£37,173.95
3	LON/2002/0271	Contents	LON/2000/0765	Assessment	14.3.02		22.3.02	12/01	£99,681.26	15/12/14	£62,839.23	£26,714.35	£36,124.88
4	LON/2002/0462	Contents	LON/2000/0765	Assessment	22.5.02		31.5.02	03/02	£99,681.26	15/12/14	£61,152.40	£25,976.98	£35,175.42
5	LON/2002/0788	Contents	LON/2000/0765	Assessment	14.8.02		9.9.02	06/02	£99,681.26	15/12/14	£59,408.72	£25,231.42	£34,177.30
6	LON/2003/0205	Contents	LON/2000/0765	Assessment	29.11.02		20.2.03	09/02	£99,681.26	15/12/14	£57,589.22	£24,477.67	£33,111.55
7	LON/2003/0323	Contents	LON/2000/0765	Assessment	10.3.03		17.3.03	12/02	£99,681.26	15/12/14	£55,952.48	£23,723.91	£32,228.57
8	LON/2004/1945	Contents	LON/2000/0765	Assessment	29.10.04		26.11.04	06/03-06/04	£498,406.30	15/12/14	£246,268.64	£104,850.49	£141,418.15
9	LON/2005/0755	Contents	LON/2000/0765	“Decision dated 11 July 2005 that claims to recover VAT in respect of assessed amounts for periods from March 2003 to March 2005 would not be processed”	12.6.03 (assessment) 1.7.05 (s.80)	11.7.05	19.7.05	03/03	£99,681.26	15/12/14	£54,358.02	£22,986.54	£31,371.48
10		Contents	LON/2000/0765	“Decision dated 11 July 2005 that claims to recover VAT in respect of assessed amounts for periods from March 2003 to March 2005 would not be processed”	11.11.04 (assessment) 1.7.05 (s.80)	11.7.05	19.7.05	09/04	£99,681.26	15/12/14	£43,774.00	£18,759.80	£25,014.20
11		Contents	LON/2000/0765	“Decision dated 11 July 2005 that claims to recover VAT in respect of assessed amounts for periods from March 2003 to March 2005 would not be processed”	10.2.05 (assessment) 1.7.05 (s.80)	11.7.05	19.7.05	12/04	£99,681.26	15/12/14	£42,004.65	£17,757.54	£24,247.11
12		Contents	LON/2000/0765	“Decision dated 11 July 2005 that claims to recover VAT in respect of assessed amounts for periods from March 2003 to March 2005 would not be processed	4.5.05 (assessment) 1.7.05 (s.80)	11.7.05	19.7.05	03/05	£99,681.26	15/12/14	£40,492.82	£16,774.38	£23,718.44
13	LON/2006/0601	Contents	LON/2000/0765	“Claim for repayment of the sums assessed in periods 06/05 to 12/05 would not be processed”	3.8.05 (assessment) 19.5.06 (s.80)	23.5.06	26.5.06	06/05	£99,681.26	15/12/14	£38,930.04	£15,780.30	£23,149.74
14		Contents	LON/2000/0765	“Claim for repayment of the sums assessed in periods 06/05 to 12/05 would not be processed”	15.11.05 (assessment) 19.5.06 (s.80)	23.5.06	26.5.06	09/05	£99,681.26	15/12/14	£37,367.25	£14,843.57	£22,523.68
15		Contents	LON/2000/0765	“Claim for repayment of the sums assessed in periods 06/05 to 12/05 would not be processed”	1.2.06 (assessment) 19.5.06 (s.80)	23.5.06	26.5.06	12/05	£99,681.26	15/12/14	£35,844.62	£14,089.81	£21,754.81
16		Contents	LON/2000/0765	“Claim for repayment of the sums assessed in periods 06/05 to 12/05 would not be processed” [HB/60/560]	28.4.06 (assessment) 19.5.06 (s.80)	23.5.06	26.5.06	03/06	£99,681.26	15/12/14	£34,451.89	£13,352.45	£21,099.44
17 (1)	LON/2000/0765	Contents	LON/2000/0765	Section 80	30.6.00	12.7.00	14.7.00	06/97-09/99	£5,327,366.34(Footnote:²)	15/12/14	£6,116,134.50	£2,949,666.00	£3,166,468.50
17 (2)	LON/2002/0789	Contents	LON/2000/0765	Section 80	13.8.02	23.8.02	4.9.02	03/89-12/92 03/93-06/95	£5,327,366.34(Footnote:³)	15/12/14	£6,116,134.50	£2,949,666.00	£3,166,468.50
17 (3)	LON/2008/1365	Contents	LON/2000/0765	Section 80	22.1.08	23.5.08	20.6.08	03/89-06/07	£5,327,366.34(Footnote:⁴)	15/12/14	£6,116,134.50	£2,949,666.00	£3,166,468.50
18	TC/2011/09696	Contents	LON/2000/0765	Section 80	13.9.11	27.10.11	11.11.11	09/07-06/08	£496,748.86	15/12/14	£109,923.84	£28,614.93	£81,308.91
19	TC/2013/06544	Contents	LON/2000/0765	Section 80	30.9.12	3.9.13	19.9.13	09/08-03/09 06/09-12/11	£2,081,704.38	15/12/14	£260,405.49	£45,765.97	£214,639.52
20	TC/2009/12645	Contents	LON/2000/0766	Section 80	14.11.08	22.6.09	17.7.09	03/87-09/96	£2,257,236.72	15/12/14	£3,549,030.70	£2,271,852.09	£1,277,178.61
21	LON/2008/1365	Verandas	LON/2000/0765	Section 80	22.1.08	23.5.08	20.6.08	03/89–06/04;	£825,351.00	15/12/14	£728,850.44	£407,186.00	£321,664.44
22	LON/2008/1365	Verandas	LON/2000/0765	Section 80	22.1.08	23.5.08	20.6.08	12/04–06/07;	£283,638.00	15/12/14	£96,180.92	£39,627.00	£56,553.92
23	TC/2011/09696	Verandas	LON/2000/0765	Section 80	13.9.11	27.10.11	11.11.11	09/07-06/08	£151,353.75	07/05/2015	£34,455.10	£13,248.38	£21,206.72
24	TC/2013/09462	Verandas	LON/2000/0765	Section 80	30.9.12	3.9.13	19.9.13	09/08-03/09 06/09-12/11	£1,334,101.86	07/05/2015	£164,204.24		£164,204.24
25	LON/2009/0572	Bingo Participation fees		Section 80	18.12.08	29.1.09	2.3.09	03/06-09/08	£897,167.95	04/05/2010	£121,470.21	£88,686.00	£32,784.21
26	LON/2008/2228	Bingo Participation fees		Section 80	14.11.07 14.12.07 31.3.06 30.6.08	2.10.08	17.10.08	03/75-12/02	£2,535,114.09	04/05/2010	£2,002,693.23	£1,360,024.00	£642,669.23
27(1)	LON/2008/2227	Gaming machines		Section 80	19.10.05 9.12.05 30.6.06 30.6.06 14.11.07	2.10.08	17.10.08	12/02-12/05	£5,620,790.28	16/11/20	£3,312,543.10	£1,665,867.20	£1,646,675.90
27(2)	TC/2011/03844	Gaming machines		Recovery Assessments (ss.80(4A), 78A)	20.4.11		16.5.11	12/02-12/05	£5,620,790.28	16/11/20	£3,312,543.10	£1,665,867.20	£1,646,675.90

APPENDIX 2

	Appeal Reference	Type of Appeal	Interest payable
1	LON/2001/1203	Contents	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
2	LON/2002/0112	Contents	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
3	LON/2002/0271	Contents	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
4	LON/2002/0462	Contents	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
5	LON/2002/0788	Contents	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
6	LON/2003/0205	Contents	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
7	LON/2003/0323	Contents	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
8	LON/2004/1945	Contents	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
9	LON/2005/0755	Contents	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
10		Contents	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
11		Contents	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
12		Contents	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
13	LON/2006/0601	Contents	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
14		Contents	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
15		Contents	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
16		Contents	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
17(1)	LON/2000/0765	Contents	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
17(2)	LON/2002/0789	Contents	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
17(3)	LON/2008/1365	Contents	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
18	TC/2011/09696	Contents	No – post 1 April 2009 Objection applies
19	TC/2013/06544	Contents	No – post 1 April 2009 Objection applies
20	TC/2009/12645	Contents	No – post 1 April 2009 Objection applies
21	LON/2008/1365	Verandas	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
22	LON/2008/1365	Verandas	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
23	TC/2011/09696	Verandas	No – post 1 April 2009 Objection applies
24	TC/2013/09462	Verandas	No – post 1 April 2009 Objection applies
25	LON/2009/0572	Bingo Participation fees	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
26	LON/2008/2228	Bingo Participation fees	Yes margin between statutory interest and 1.5% above base for period from when tax paid to when repaid
27(1)	LON/2008/2227	Gaming machines	Yes margin between statutory interest and 1.5% above base for period from when tax paid to repayment of the claim in 2011
27(2)	TC/2011/03844	Gaming machines	No – post 1 April 2009 Objection applies

(Footnote: ¹⁵)By 2009 an appeal could not be entertained without the payment of amounts determined by HMRC as due by way of penalty or surcharge under sections 59 to 69B, 76 and paragraph 10(1) Schedule 11 VATA and a joint and several liability notice under section 77A VATA.

(Footnote: ¹⁶)Aggregate figures for LON/2008/1365, LON/2002/0789, LON/2000/0765.

(Footnote: ¹⁷)Aggregate figures for LON/2008/1365, LON/2002/0789, LON/2000/0765.

(Footnote: ¹⁸)Aggregate figures for LON/2008/1365, LON/2002/0789, LON/2000/0765.