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Three-year cap - not pre-1997! |
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A three-year time limit on claims for deducting VAT input tax was introduced
as from 1 May 1997. But, the HL has now held that these provisions were
introduced without the required ‘reasonable transitional period’.
The end
result is that the UK tax payers can now recover input VAT if it has not
previously been claimed at any time between 1973 and 1997! It is reckoned
that this decision will cost HMRC £1bn.
The likelihood is that HMRC will introduce a transitional period for pre-
1997 claims, and that will in effect introduce a new time limit. But, until
that happens old VAT claims can now be reactivated. Condé Nast v HMRC
[2008] . © Practical Lawyer
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May 2008 |
