Unjust enrichment

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance

Unjust enrichment

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance
imgtext

This guidance note provides information about unjust enrichment.

Unjust enrichment ― overview

‘Unjust enrichment’ is a phrase used in the VAT legislation to describe a situation whereby a supplier profits by charging an amount of VAT that is not due (strictly speaking it is not VAT) and obtains a refund from HMRC, by repayment of or credit for, the amount charged which should not have been charged. In this situation, the supplier receives the amount twice; once from the customer(s) and once from HMRC. To prevent such a situation arising, HMRC may invoke the defence of unjust enrichment. The defence of unjust enrichment is not limited to situations where a supplier has charged an amount of VAT that is not due in error, not realising that the supply qualified for a lower rate of VAT or was exempt from VAT. The defence of unjust enrichment can apply in other situations, for example, if HMRC policy or the VAT legislation is found to be incorrect.

Reasons for charging VAT that is not due include HMRC or the VAT legislation

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+

Popular Articles

Substantial shareholding exemption ― overview

Substantial shareholding exemption ― overviewThe substantial shareholdings exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. No claim is required. Provided

14 Jul 2020 13:44 | Produced by Tolley Read more Read more

Gilts

Gilts‘Gilts’ are securities that are also known by a number of different names (eg gilt-edged securities, Government securities or treasury stock).The Government sells gilts to fund the deficit between public spending and tax receipts. Normally, the Government pays interest to the holder of the gilt

14 Jul 2020 11:48 | Produced by Tolley Read more Read more

Indexation allowance and rebasing

Indexation allowance and rebasingThis guidance note explains the general rules surrounding the availability of indexation allowance (which was frozen at December 2017) on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview

14 Jul 2020 11:59 | Produced by Tolley in association with Jackie Barker of Wells Associates Read more Read more