HMRC Litigation

We were instructed by Wills Accountants regarding the possibility of reclaiming VAT for one of their clients who undertook a storage container business. We ran an argument that the original letting of storage space was an exempt supply for VAT purposes using as our authority a recently decided case, such that our client was therefore due a repayment of overpaid VAT.

HMRC originally countered that any VAT repayment would be precluded through the principle of "unjust enrichment", we have just successfully rebutted this argument. HMRC are now likely to appeal the original decision to the upper tribunal and await confirmation of this fact before pursuing this matter further.