The Rank Group PLC v The Commissioners for HMRC

The Rank Group PLC v The Commissioners for HMRC

The Tribunal held that while HMRC misapplied the set-off provisions and underpaid Rank by £67.05m, the extinguishing of cross-claims by set-off does not constitute a 'payment' for the purposes of section 80(1B) VATA. Therefore, Rank's claim under section 80(1B) fails as there was no qualifying payment to HMRC within...

Source-derived case information.

Parties
Appellant: The Rank Group PLC; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
01 April 2019
Procedural Posture
Tax Appeal / Upper Tribunal (tax and Chancery Chamber) Appeal From First Tier Tribunal
Outcome
Appeal dismissed
Legal Topics
Value Added Tax, Statutory Set Off, Overpaid Tax Recovery, Limitation Periods, Unjust Enrichment
Tax Law Value Added Tax Statutory Set Off Overpaid Tax Recovery Limitation Periods Unjust Enrichment

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Parties

The Rank Group PLC

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / Upper Tribunal (tax and Chancery Chamber) Appeal From First Tier Tribunal

Legal Issues

  1. 1 Whether the appellant made a valid claim under section 80(1B) of the Value Added Tax Act 1994
  2. 2 Whether set-off of input and output tax constitutes 'payment' for the purposes of section 80(1B)
  3. 3 Proper operation of set-off provisions under sections 81(3) and 81(3A) VATA

Ratio Decidendi

The Tribunal held that while HMRC misapplied the set-off provisions and underpaid Rank by £67.05m, the extinguishing of cross-claims by set-off does not constitute a 'payment' for the purposes of section 80(1B) VATA. Therefore, Rank's claim under section 80(1B) fails as there was no qualifying payment to HMRC within the meaning of the statute.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Any application for costs to be made in writing within one month