Sempra Metals wins landmark tax victory
House of Lords rules against Inland Revenue on interest due on ACT repayments
Companies claiming back advanced corporation tax from the taxman will be able
to claim compound rather than simple interest on the repayments following a
landmark House of Lord’s decision.
In a judgment announced today the Lords ruled the Sempra Metals should be
paid compound rather than simple interest on advanced corporation tax
repayments. The Sempra case was one of a number challenging the UK’s ACT regime.
The ACT group litigation order had gone all the way to the
ECJ , where it was ruled
that parts of the ACT regime were contrary to European law. A number of the
cases have now gone through UK courts following the ruling by the ECJ.
Sempra, represented by
Slaughter & May , argued that it should recover
interest at a compound rate on ACT that had been paid.
The Lord’s ruled that Sempra was entitled to compound interest from the
taxman on the amounts of ACT paid from the date of payment to the date of
utilisation or repayment of the ACT in question.
Further reading:
Millions rest on House of Lords tax decisions
