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 did not have a pre-existing right to claim input tax for April 1997 invoices at 1 May 1997 because the right to claim could only be exercised at the end of the VAT period (30 June 1997), after the three-year time limit was introduced. Therefore, the claims are time-barred. The claim for £20,000, initially deducted and then assessed by HMRC, is properly a Regulation 29 claim and not a section 80 claim, but this does not affect the outcome.

Citation
[2009] UKFTT 32 (TC)
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), Decision
Outcome
Appeal dismissed
Legal Topics
Value Added Tax, Input Tax Deduction, Time Limits for Claims, Transitional Provisions, Interpretation of VAT Regulations
Tax Law European Union Law Value Added Tax Input Tax Deduction Time Limits for Claims Transitional Provisions Interpretation of VAT Regulations

Case Brief

Summary, issues, holding and outcome

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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), 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
  2. 2 Whether the three-year time limit introduced by Regulation 29(1A) on 1 May 1997 applies to input tax incurred and invoiced in April 1997, where the VAT period ended after 1 May 1997
  3. 3 Whether the Appellant had 'pre-existing rights' to claim input tax such that the time limit could not be invoked

Ratio Decidendi

The Appellant did not have a pre-existing right to claim input tax for April 1997 invoices at 1 May 1997 because the right to claim could only be exercised at the end of the VAT period (30 June 1997), after the three-year time limit was introduced. Therefore, the claims are time-barred. The claim for £20,000, initially deducted and then assessed by HMRC, is properly a Regulation 29 claim and not a section 80 claim, but this does not affect the outcome.

Court Disposition

Appeal dismissed