Following on from the new Corporation Tax on payments of restitution interest, there is an interesting case of the Coin-a-Drink Ltd vs HMRC (2015) TC 04657 which says that restitution interest can indeed be the subject of direct tax.

This case concerned the repayment of output VAT relating to the supply of hot drinks. HMRC repaid the amounts with interest but imposed a Corporation Tax on both the repayment and the interest element held by the First-tier Tax Tribunal that the repayment did not amount to a mistake based restitution, so it was bound by an early decision in spite of the appellant claiming that it should be taxed under EU law.

Unfortunately no can do.

Related Articles

Comments are closed.


We're here to help you. Call 0800 471 4546 for free confidential help and advice 24/7
or fill in your details below.

Enter captcha below:

*Please do not use this form to report suspected tax fraud or evasion or to sell your own services.

Translate »