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

This appeal concerns whether Colaingrove Limited (“the Company”) is entitled to an award of discretionary interest under section 84(8) Value Added Tax Act 1994 (“VATA”) in respect of amounts of overpaid VAT repaid to the Company by the Appellants (“HMRC”). (Footnote: ¹) This is, perhaps, one of the final chapters in a very long-running series of VAT disputes between the Company and HMRC in which HMRC were largely unsuccessful (Footnote: ²).

In a decision released on 29 May 2024, the First-tier Tribunal (“FTT”) released a decision (“the Decision”) allowing the Company’s appeal as regards its entitlement to discretionary interest under section 84(8) (“discretionary interest”) in respect of sums repaid following litigation of a section 80 VATA claim in relation to certain VAT periods, determining the rate to be the margin between statutory interest paid and the Bank of England base rate plus 1.5%, but rejecting the Company’s claim for discretionary interest in respect of decisions taken on or after 1 April 2009 and/or relating to VAT repaid in respect of VAT periods after that date. Both parties applied for permission to appeal in respect of those issues in which they were unsuccessful and the FTT granted both parties permission to appeal to this Tribunal on 24 August 2024.

We wish to express our gratitude to counsel and those instructing them for their very comprehensive and helpful submissions and the efficient conduct of this appeal.