In Section 1.31 of the February 2008 issue of tax.point, we reported on the UK House of Lords decision in the Conde Nast case where it was held that it was against EU law to introduce new time limits without adequate transitional arrangements. As a consequence, taxpayers may be able to claim overpaid VAT in the period from the introduction of VAT up to the introduction of the new rule in 1996. HMRC have now issued a Brief on the case.

HMRC are in the process of considering the decision.

According to the Brief, as a result of the House of Lords decision, claims may now be made for:

• output tax overpaid or overdeclared in accounting periods ending before 4 December 1996
• input tax in respect of which the entitlement to deduct arose in accounting periods ending before 1 May 1997

A copy of HMRC Brief No. 07/08 is reproduced at Section 2.10.