20 April 2022

Telent Technology Services Ltd v HMRC; (FTT)

The First-tier Tribunal has released its decision in Telent Technology Services Limited v HM Revenue and Customs.

The group VAT representative had previously appealed against certain assessments seeking to recover input tax on fees paid to investment advisers, but had withdrawn that appeal in 2016 giving rise to a settlement by virtue of section 85(4) VATA 1994. Later in 2016, the new group VAT representative made a claim which related (in part) to the same input tax in the same periods. HMRC rejected the claim but later accepted that the group was (in principle) entitled to credit the input tax. However, HMRC applied to strike out the appeal to the extent that it related to the same input tax in the same periods that had been the subject of the previous appeal on the grounds that cause of action estoppel, issue estoppel and/or abuse of process applied to prevent re-litigation in relation to that input tax. The Tribunal allowed HMRC’s strike-out application and held that cause of action estoppel applied and (in the alternative) issue estoppel and abuse of process applied.

Ben Elliott, instructed by HM Revenue and Customs, for the Respondents.

Click here to view the decision.