Evonik UK Holdings Limited v The Commissioners for HMRC

Evonik UK Holdings Limited v The Commissioners for HMRC

Restitution following the setting aside of a court order does not automatically entitle the payer to interest; allocation of payment should be made against accrued interest in priority to principal, as this achieves fairness and justice given the overall claim exceeds the payment and the claimant was owed a greater sum throughout.

Parties
Claimant/respondent: Evonik UK Holdings Limited; Defendants/appellants: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
11 July 2025
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Advance Corporation Tax, EU Law Remedies, Interest on Court Orders, Restitution Following Reversal of Judgment, Apportionment of Payments
Tax Law Restitution Interest Advance Corporation Tax EU Law Remedies Interest on Court Orders Restitution Following Reversal of Judgment Apportionment of Payments

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Parties

Evonik UK Holdings Limited

Claimant/respondent

The Commissioners for His Majesty’s Revenue and Customs

Defendants/appellants

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether HMRC is entitled to restitution and interest after summary judgment order set aside
  2. 2 How to allocate payment made under an erroneous order when overall claim exceeds payment
  3. 3 Whether payment should be credited against principal or interest

Ratio Decidendi

Restitution following the setting aside of a court order does not automatically entitle the payer to interest; allocation of payment should be made against accrued interest in priority to principal, as this achieves fairness and justice given the overall claim exceeds the payment and the claimant was owed a greater sum throughout.

Court Disposition

Appeal dismissed

Orders

  • No entitlement to restitutionary interest for HMRC
  • Payment of £6.4m credited against accrued interest as at date of payment