THE SUPREME COURT has given HM Revenue & Customs permission to challenge a Court of Appeals ruling that forces the government department into paying compound interest to online retail company Littlewoods.
In June, Finacial Director reported that the Court of Appeal ruled in favour of the Barclay brothers-owned chain’s case against HMRC, finding that it had overpaid approximately £204m in VAT between 1973 and 2004.
HMRC repaid the principal sum back to Littlewoods with simple interest rates, but Littlewoods argues that it should receive compound interest on the amount it overpaid, seeking to recover £1bn in restitution.
Littlewoods is also lodging an appeal at the Supreme Court in relation to an earlier ruling.
It is unknown when exactly the appeals will be heard by the Supreme Court.