Evonik UK Holdings Ltd v Revenue and Customs [2025] EWCA Civ 1392 (07 November 2025)

Evonik UK Holdings Ltd v Revenue and Customs [2025] EWCA Civ 1392 (07 November 2025)

Where a payment is made under an order later set aside, and the claimant's overall claim exceeds the payment, the payment should be credited against accrued interest as of the payment date, not principal, and no automatic entitlement to restitutionary interest arises; allocation to interest is fair and consistent with established principles.

Citation
[2025] EWCA Civ 1392
Parties
Claimant/respondent: Evonik UK Holdings Limited; Defendants/appellants: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
07 November 2025
Procedural Posture
Civil Appeal / Appeal From High Court Final Order
Outcome
Appeal dismissed
Legal Topics
Interest on Judgments, Restitution Following Set Aside, Allocation of Payments, EU Law Remedies, Limitation of Actions
Tax Law Restitution Civil Procedure Interest on Judgments Restitution Following Set Aside Allocation of Payments EU Law Remedies Limitation of Actions

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 18 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

Evonik UK Holdings Limited

Claimant/respondent

The Commissioners for His Majesty's Revenue and Customs

Defendants/appellants

Procedural Posture

Civil Appeal / Appeal From High Court Final Order

Legal Issues

  1. 1 Whether HMRC is entitled to restitution and interest after summary judgment order set aside
  2. 2 How payment made under erroneous order should be allocated against claimant's final claim
  3. 3 Whether allocation should be to interest or principal

Ratio Decidendi

Where a payment is made under an order later set aside, and the claimant's overall claim exceeds the payment, the payment should be credited against accrued interest as of the payment date, not principal, and no automatic entitlement to restitutionary interest arises; allocation to interest is fair and consistent with established principles.

Court Disposition

Appeal dismissed

Orders

  • Payment of £6.4m credited against accrued interest as of 23 March 2016
  • No restitutionary interest awarded to HMRC