UT Confirms Discounted Time Period for Repayment Supplement in Bollinway Properties Ltd v HMRC

• Bollinway Properties Ltd acquired Toys ‘R’ Us Properties Ltd for £1 in April 2018.
• Bollinway submitted a VAT return claiming a repayment of £71,170,729.68.
• Bollinway asked HMRC to set off the credit against TRUP’s liability to pay output tax.
• HMRC allocated £71,084,816.43 to TRUP’s VAT account and authorized £85,913.25 for repayment to Bollinway.
• Bollinway claimed repayment supplement of £3.55m, but HMRC refused the claim.
• Bollinway appealed to the FTT, which dismissed the appeal.
• Bollinway appealed to the UT, which also dismissed the appeal.
• The UT held that the additional information sought by HMRC was reasonable.
• The UT did not address whether repayment supplement can apply in scenarios other than late cash payments.
• The UT provided clarity on the ‘relevant’ period for repayment supplement.

Source: rpc.co.uk

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.

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