Knowledge
Knowledge is critical for business and individuals. Just give us your email address and tell us what areas you are interested in and we will deliver knowledge direct to your inbox - timely and tailored legal updates.
E-Bulletins
Sports
Manchester United seek recovery of backdated VAT
Manchester United has joined a long list of organisations seeking recovery of backdated VAT from HM Revenue and Customs (HMRC). United are seeking recovery of around £300,000 compound interest in relation to VAT paid on its flotation in 1991 having already recovered simple interest amounting to £61,000.
Littlewoods recently lost a similar challenge against HMRC before the High Court, which ruled that simple interest only would be paid.
An early resolution may not be likely given that the Littlewoods decision is to be referred to the European Court of Justice. The key issue for the ECJ will be whether an effective remedy requires a member state to compensate a claimant for the loss of the use of money through an award of compound interest.
22 July 2010