HMRC's position following the high court judgment in Littlewoods Retail Ltd and Others highlights that the high court found against HMRC and that Littlewoods’ claim for additional interest 'succeeded in full'.
HMRC has stated that it considers that there is not a clear basis of claim for others as there were "exceptional" circumstances specific to the Littlewoods claimants'.
The case concerns the adequacy of interest paid following repayment of overpaid VAT.
HMRC has stated that 'They [Littlewoods Retail Ltd and Others] then argued that the interest already paid to them was not adequate and that they were entitled to compound interest both as a matter of European Community law and also as a matter of English domestic law.'
HMRC is appealing the case, but if you have received interest on overpaid VAT you may wish to review this case.