Heathrow Airport Ltd & Ors v Her Majesty's Treasury (Rev 1)

Heathrow Airport Ltd & Ors v Her Majesty's Treasury (Rev 1)

The Government lawfully abolished the VAT RES and ESC 9.1 schemes. The continued operation or extension of ESC 9.1 was ultra vires under the Wilkinson principle and could not be achieved by extra-statutory concession. The GATT required non-discrimination between EU and non-EU destinations, and the Government's interpretation and application of GATT was correct and tenable. The Government was not required to conduct a quantitative analysis of wider economic impact beyond what was done, and its decision-making process was rational and within its margin of discretion. The existence of the TCA did not alter the legal position. There was no undue delay or procedural unfairness.

Parties
1st Appellant: Heathrow Airport Limited; 2nd Appellant: Global Blue (UK) Limited; 3rd Appellant: WDFG UK Limited; 1st Respondent: Her Majesty's Treasury; 2nd Respondent: The Commissioners for Her Majesty's Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
21 May 2021
Procedural Posture
Judicial Review and Appeal / Final Judgment After Full Hearing
Outcome
All grounds dismissed. Appeal and judicial review refused.
Legal Topics
Judicial Review, VAT and Tax Exemptions, World Trade Organization (wto) Law, GATT Compliance, Administrative Law, Statutory Interpretation
Public Law Tax Law International Trade Law Judicial Review VAT and Tax Exemptions World Trade Organization (wto) Law GATT Compliance Administrative Law +1 more

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Parties

Heathrow Airport Limited

1st Appellant

Global Blue (UK) Limited

2nd Appellant

WDFG UK Limited

3rd Appellant

Her Majesty's Treasury

1st Respondent

The Commissioners for Her Majesty's Revenue and Customs

2nd Respondent

Procedural Posture

Judicial Review and Appeal / Final Judgment After Full Hearing

Legal Issues

  1. 1 Whether the abolition of VAT RES and ESC 9.1 was lawful under domestic and international law
  2. 2 Whether the Government misapplied the principle in Wilkinson regarding extra-statutory concessions
  3. 3 Whether the Government erred in its interpretation and application of GATT Article I:1 and III:2

Ratio Decidendi

The Government lawfully abolished the VAT RES and ESC 9.1 schemes. The continued operation or extension of ESC 9.1 was ultra vires under the Wilkinson principle and could not be achieved by extra-statutory concession. The GATT required non-discrimination between EU and non-EU destinations, and the Government's interpretation and application of GATT was correct and tenable. The Government was not required to conduct a quantitative analysis of wider economic impact beyond what was done, and its decision-making process was rational and within its margin of discretion. The existence of the TCA did not alter the legal position. There was no undue delay or procedural unfairness.

Court Disposition

All grounds dismissed. Appeal and judicial review refused.

Orders

  • Permission to appeal refused.
  • Judicial review claim dismissed.