HMRC have lost their Court of Appeal Judgement in the Littlewoods Retail Ltd case in respect of Compound Interest. However, their position appears to be that this case was specific and they state they do not intend to pay out other claims for compound interest.
This brief explains HM Revenue and Customs’ (HMRC) position following the Court of Appeal judgment in Littlewoods Retail Ltd and others handed down on 21 May 2015. The Court of Appeal found against HMRC deciding that Littlewoods claim for additional interest succeeded in full. Like the High Court’s earlier ruling this finding was based on the ‘exceptional’ circumstances specific to the Littlewoods claimants. It does not provide a clear basis that could be applied to other claimants or a formula for doing so. No payments are due to other VAT compound interest claimants at this stage.