Littlewoods Retail Ltd & Ors v HM Revenue & Customs

Littlewoods pursued claims against HMRC for recovering VAT overpayments and claimed compound interest, challenging the adequacy of such repayments handled under sections 78 and 80 of VATA 1994. The court held that the overpayments were not due under EU law and that the simple interest paid did not offer adequate indemnity, necessitating the disapplication of these sections to allow claimants pursuing restitution under both Woolwich and mistake-based claims. The case revolved around issues fundamental to Tax Law and the alignment of UK statutes with EU principles of effectiveness and equivalence.