Unjust Enrichment – HMRC response
A new HMRC Brief (05/09) has been issued following the recent House of Lords VAT case concerning unjust enrichment. This Brief confirms that HMRC will no longer use the reason of unjust enrichment to refuse to repay VAT claims for periods prior to 26 May 2005. Claims made after this date continue to be subject to the unjust enrichment clauses.
HMRC will with immediate effect pay any outstanding pre-May 2005 claims that were refused on the grounds of unjust enrichment. Other types of claims from this period may be resubmitted for consideration, subject to the relevant time limits.
The 2005 Finance Act properly implemented the unjust enrichment defence for HRMC and no claims will be entertained for periods after 26 May 2005.