- Two car dealerships have lost an appeal at the Upper Tribunal over VAT refunds for the sale of ex-demonstrator cars.
- The case involved a margin claim for demonstrator cars totaling £1.4m, settled in 2006 by agreement with HMRC.
- The dealerships, Cambria Automobiles (South East) Ltd and Invicta Motors Ltd, were claiming £315,902.82 and £415,854.39 respectively.
- The original claims dated back from 1976 to 1992, but the dealerships made further claims in 2009, which were rejected by the Upper Tribunal.
- The tribunal ruled that the settlement agreement precluded further claims and that the new claims fell outside statutory time limits.
- The judge dismissed the appeal but left open the possibility for further litigation within a 56-day appeal window.
- HMRC stated that settling appeals by agreement allows for quicker resolution and legal certainty.
Source: accountancydaily.co
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
