Fleet News

Lobby group aims to end restrictions

ACCOUNTANT Deloitte & Touche has established a lobby group to campaign against the Government's restrictions on the amount of tax companies can claim back after winning VAT disputes.

Paymaster General David Heathcoat-Amory announced a three-year cap on claims for backdated VAT earlier this year - dealing a serious blow to fleet operators currently involved in legal battles over the VAT treatment of company cars (Fleet News July 26).

The Deloitte & Touche campaign, which has the support of a number of key motor industry players, will lobby MPs on the alleged unfairness of the cap. The company is not proposing to pursue its claims through the courts, but has commissioned a leading European lawyer to produce a report explaining why the measure offends European law.

Meanwhile, T C Harrison, Allied Domecq and the Royal Bank of Scotland have all won referral to the Court of Appeal following defeat in the High Court earlier this year on the case for VAT recovery on company cars (Fleet News May 17) and are currently awaiting a date for their hearings.

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