Cable & Wireless plc v Revenue & Customs [2009] UKFTT 32 (TC) (27 March 2009)

Cable & Wireless plc v Revenue & Customs [2009] UKFTT 32 (TC) (27 March 2009)

The Appellant's entitlement to deduct input tax for services invoiced in April 1997 did not constitute a 'pre-existing right' as of 1 May 1997 because the right to claim could only be exercised at the end of the VAT period (30 June 1997), after the limitation was introduced. Therefore, the three-year time limit applied, and the claims were time-barred. Additionally, the claim for £20,000, initially deducted and then assessed by HMRC, was properly a Regulation 29 claim, not a section 80 claim, due to the exclusion in section 80(1B)(b).

Citation
[2009] UKFTT 32
Parties
Appellant: Cable & Wireless plc; Respondents: The Commissioners for Her Majesty's Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
27 March 2009
Procedural Posture
VAT Input Tax Claim Appeal / First Tier Tribunal (tax), Substantive Decision
Outcome
Appeal dismissed
Legal Topics
Value Added Tax, Input Tax Deduction, Limitation Periods, Transitional Provisions, Retrospective Legislation
Tax Law European Union Law Value Added Tax Input Tax Deduction Limitation Periods Transitional Provisions Retrospective Legislation

Case Brief

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Parties

Cable & Wireless plc

Appellant

The Commissioners for Her Majesty's Revenue & Customs

Respondents

Procedural Posture

VAT Input Tax Claim Appeal / First Tier Tribunal (tax), Substantive Decision

Legal Issues

  1. 1 Whether the Appellant's late claim for input tax is to be made under Regulation 29(1) of the VAT Regulations 1995 or under section 80(1B) of the VAT Act 1994; Whether the three-year time limit introduced on 1 May 1997 for input tax claims applies to the Appellant's claim for input tax incurred and invoiced in April 1997, where the VAT period ended after 1 May 1997; Whether the Appellant had 'pre-existing rights' to claim input tax such that the time limit could not be invoked against it.

Ratio Decidendi

The Appellant's entitlement to deduct input tax for services invoiced in April 1997 did not constitute a 'pre-existing right' as of 1 May 1997 because the right to claim could only be exercised at the end of the VAT period (30 June 1997), after the limitation was introduced. Therefore, the three-year time limit applied, and the claims were time-barred. Additionally, the claim for £20,000, initially deducted and then assessed by HMRC, was properly a Regulation 29 claim, not a section 80 claim, due to the exclusion in section 80(1B)(b).

Court Disposition

Appeal dismissed

Orders

  • No order as to costs; Respondents' application for costs refused.