BIM40150 - Specific receipts: refunds of sums paid as VAT: contents

This guidance is concerned with the direct tax treatment of refunds, and interest on those refunds, arising from the operation of the Value Added Tax (VAT) regime.

The majority of such refunds and interest accounted for by businesses are taxable receipts for direct tax purposes.

This is a developing area and, of necessity, guidance cannot cover all conceivable circumstances. Any case of doubt or difficulty should be referred to Business Profits.

1. BIM40153

   Overview
2. BIM40156

   Companies with investment business
3. BIM40162

   Finding the right guidance – flowchart
4. BIM40164

   The starting point for the direct tax analysis
5. BIM40166

   Refund of output tax
6. BIM40168

   Input tax
7. BIM40170

   Refund received by the trader or successor
8. BIM40171

   VAT groups
9. BIM40172

   VAT group examples
10. BIM40176

    Refund accounted for by someone other than the trader who made the overpayment: introduction
11. BIM40178

    Refund accounted for by someone other than the trader who made the overpayment: payment for services
12. BIM40180

    Refund accounted for by someone other than the trader who made the overpayment: post-cessation receipts
13. BIM40182

    Refund accounted for by someone other than the trader who made the overpayment: miscellaneous income
14. BIM40184

    What happens when refund is repaid to HMRC
15. BIM40186

    What if the original VAT-paying customer is refunded?
16. BIM40188

    Time limit for claims
17. BIM40194

    Taxation of interest
18. BIM40196

    Shop Direct Group v Commissioners for Her Majesty's Revenue and Customs [2016] UKSC 7