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Elephant in the Room

 
 
Jason Collins and Adam Rycroft of McGrigors look at compound interest in the world of VAT covering Chalke and Barnes the test claimants in group litigation (VIC GLO)
 
On 8 May 2009 the High Court gave its judgment in Chalke and Barnes [2009] EWCH 952 (ch) the test claimants in group litigation referred to in short as the VIC GLO which stands for the VAT Interest Cars Group Litigation Order.
 
The central issue in dispute in the VIC GLO was whether taxpayers are entitled to be paid interest on a compound basis on overpaid VAT. The main battle lines were drawn between HMRC on the one hand arguing...

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