Post-Brexit Reemtsma Principle: Chris Poulton’s VAT Claim Against HMRC Survives Strike Out Attempt

• The case involved Chris Poulton and HMRC regarding the application of the Reemtsma principle post-Brexit.
• The Reemtsma principle allows third parties to claim incorrectly paid VAT from tax authorities when reclaiming from contractors is impossible.
• Poulton paid VAT on services that were zero-rated and sought to reclaim it from HMRC after the contractor went into liquidation.
• HMRC argued that post-Brexit, rights based on EU law principles like effectiveness were removed, and applied to strike out Poulton’s claim.
• The FTT dismissed HMRC’s application, suggesting Poulton had a realistic chance of success due to section 28, Finance Act 2024.
• The case highlights the potential survival of Reemtsma claims post-Brexit and criticizes HMRC’s conduct towards self-represented taxpayers.

Source: rpclegal.com

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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