BT Plc v The Commissioners for HMRC

BT Plc v The Commissioners for HMRC

The Old Scheme for VAT bad debt relief was intended by Parliament to be the exclusive remedy for the relevant period, precluding common law restitutionary claims. BT's failure to claim under the Old Scheme before its repeal meant no unjust enrichment occurred, as the tax paid was properly due in the absence of a claim. For the 9-month period, any claim based on overpayment would necessarily engage s.80 VATA 1994, which provides an exclusive remedy and has been finally determined against BT. Thus, both the main period and the 9-month period claims fail.

Parties
Claimant/appellant: British Telecommunications PLC; Defendants/respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Civil Appeal / Appeal From High Court (business and Property Courts, Chancery Division) to Court of Appeal
Outcome
Appeal dismissed; cross-appeal allowed; application for strike out or reverse summary judgment succeeds in full.
Legal Topics
VAT Bad Debt Relief, Statutory Exclusivity, Unjust Enrichment, Limitation Periods, Direct Effect of EU Law, Restitution for Mistake, Implementation of EU Directives
Tax Law European Union Law Restitution VAT Bad Debt Relief Statutory Exclusivity Unjust Enrichment Limitation Periods Direct Effect of EU Law +2 more

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Parties

British Telecommunications PLC

Claimant/appellant

The Commissioners for His Majesty’s Revenue and Customs

Defendants/respondents

Procedural Posture

Civil Appeal / Appeal From High Court (business and Property Courts, Chancery Division) to Court of Appeal

Legal Issues

  1. 1 Whether the Old Scheme for VAT bad debt relief was intended to be the exclusive remedy, excluding common law claims for restitution (exclusive remedy issue)
  2. 2 Whether HMRC was unjustly enriched by BT's failure to claim under the Old Scheme (unjust enrichment issue)
  3. 3 Whether BT's claim for the 9-month period is time-barred or otherwise precluded (9-month claim issue)

Ratio Decidendi

The Old Scheme for VAT bad debt relief was intended by Parliament to be the exclusive remedy for the relevant period, precluding common law restitutionary claims. BT's failure to claim under the Old Scheme before its repeal meant no unjust enrichment occurred, as the tax paid was properly due in the absence of a claim. For the 9-month period, any claim based on overpayment would necessarily engage s.80 VATA 1994, which provides an exclusive remedy and has been finally determined against BT. Thus, both the main period and the 9-month period claims fail.

Court Disposition

Appeal dismissed; cross-appeal allowed; application for strike out or reverse summary judgment succeeds in full.

Orders

  • BT's appeal in respect of the main period is dismissed.
  • HMRC's cross-appeal in respect of the 9-month period is allowed.