EWHC 952 (2009) FJ Chalke Limited & AC Barnes (Wokingham) Limited v HMRC

VAT repayments- do claimants get compound interest? Yes- but HMRC won because claims time barred.

Case Summary:

Following the Elida Gibbs and Fleming cases many businesses were able to claim overpaid VAT - in some cases back to 1973. HMRC paid simple interest on the repaid VAT but many businesses have claimed compound interest. Chalke & Barnes were sample cases as part of a Group Litigation Order. Henderson J held that following European Law and precedent compound interest was due. However, the Limitation Act 1980, which applies in England and Wales, meant that the claimants were out of time for compound interest to be paid.