Telent Technology Services Limited v The Commissioners for HMRC
[2024] UKUT 183 (TCC)
Cambria Automobiles (South East) Limited & Anor v The Commissioners for HMRC
13 October 2023
[2023] UKUT 249 (TCC)
Upper Tribunal
Two car companies settled a VAT overpayment claim in 2006. Later, they found out they were owed more money because of errors in the government's calculations. The court said the 2006 agreement covered everything, even the mistake, so they couldn't claim extra money.
Key Facts
- •Cambria and Invicta (the Companies) made VAT overpayment claims in 2003 (2003 claims) related to demonstrator vehicles, based on HMRC's tables.
- •The 2003 claims were settled in 2006 via a Section 85 VATA agreement.
- •HMRC's tables were later amended, allowing for larger claims.
- •The Companies submitted further claims in 2009 (2009 claims) for the difference.
- •HMRC rejected the 2009 claims, leading to appeals.
- •The FTT dismissed the 2009 claims, finding them precluded by the 2006 agreement and abusive.
- •The Companies appealed the FTT's decision.
Legal Principles
Section 80 VATA allows credit or repayment of overpaid VAT upon claim.
Value Added Tax Act 1994, Section 80
Claims under Section 80 must be made in writing, stating the amount and calculation method.
VAT Regulations 1995, Regulation 37
Section 85 VATA allows settling appeals by agreement; the agreement has the same effect as a tribunal decision.
Value Added Tax Act 1994, Section 85
A second VAT overpayment claim is permissible if it presents 'something new' compared to previous claims.
Hayward Gill v CCE [1988] VATDT15634; John Wilkins (Motor Engineers) Ltd v HMRC [2010] EWCA Civ 923
Contractual interpretation involves identifying the parties' intentions based on the language used in its factual and commercial context.
Arnold v Britton [2015] AC 1619
Outcomes
The appeal is dismissed.
The Section 85 Agreement settled all Italian margin claims for the specified vehicles and periods, including those based on subsequently amended HMRC tables. The 2009 claims were not 'new' in a legally significant way, and attempting to pursue them was an abuse of process.
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