Supreme Court judgment on Littlewoods VAT refund will be huge relief to UK government

Commenting on the outcome of the Supreme Court judgment regarding Littlewoods claim for the repayment of compound rather than simple interest by HMRC, Andrew Hubbard, tax consultant at RSM said: 

‘This Supreme Court judgment will be an immense relief to HMRC – and to the UK taxpayer. The latest HMRC accounts revealed there were 19 ongoing cases in which HMRC was potentially liable to make tax repayments exceeding £100m - with the total contingent liability reaching almost £19bn. 

‘The Littlewoods case was by far the biggest and this judgment will effectively put a stop to a potential 5,000 follow-up claims for repayment of compound rather than simple interest.

‘This case has been ongoing for years and has no doubt caused many sleepless nights for the incumbent chancellors. I wouldn’t be surprised if champagne corks are heard popping in the Treasury as a result.’