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No right to set-off

11 June 2012
Issue: 4357 / Categories: Tax cases , VAT
Emblaze Mobility Solutions Ltd v CRC, Chancery Division

The claimant company was allowed a substantial claim to input VAT, as a result of previous proceedings. The First-tier Tribunal ordered HMRC to credit the firm with the amount claimed.

The department subsequently said it would set-off the tax against corporation tax and PAYE contributions owed by the company. The business claimed the set-off was unlawful, and applied for judicial review.

Teferring to FA 2008, s 130(8) and s 133, the High Court ruled there was no general right of set-off in this instance.

The Revenue was not entitled to set-off the sum owed by the company against its right as assignee to the repayment of VAT. But the firm’s claim to interest on the sum was dismissed.


Issue: 4357 / Categories: Tax cases , VAT
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