21 June 2024

Telent Technology Services Limited v HMRC

The Upper Tribunal has released its decision in Telent Technology Services Limited v HMRC [2024] UKUT 00183 (TCC). The Tribunal has considered the scope and conditions for estoppel by acquiescence, issue estoppel and cause of action estoppel in relation to VAT assessments, specifically where a taxpayer withdraws an appeal against an assessment denying input tax and subsequently seeks to make a claim in respect of the same input tax. The Upper Tribunal has concluded that:

  1. Estoppel by acquiescence did not apply to prevent HMRC from advancing their strike out application because it is a form of estoppel by representation and it was therefore a requirement for the taxpayer to show detriment.
  2. Issue estoppel applied because, in the assessment appeal, the effect of section 85 VATA 1994 was that the tribunal was deemed to have determined that the taxpayer was not entitled to the relevant input tax credits;
  3. Whilst the first appeal concerned an assessment and the second appeal concerned a claim for repayment of the input tax, the cause of action in both cases was the same.

Ben Elliott acted on behalf of the Respondent for HMRC.

You can find a copy of the judgment here.