VAT reclaims - taxable income?

There remains a short period during which claimants may make backdated claims to VAT overpaid in accordance with the European Court decision in Fleming. HMRC are concerned that some companies are claiming that amounts they have secured as repayments, together with the statutory interest thereon are not taxable on the company for direct tax purposes.

Revenue & Customs Brief 14/09 issued on 20 March 2009 takes a very firm line on this issue.

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