Value Added Tax Act 1994, section 85A

Payment of tax on determination of appeal

Part V Reviews and Appeals

(1)This section applies where the tribunal has determined an appeal under section 83.

(2)Where on the appeal the tribunal has determined that—

(a)the whole or part of any disputed amount paid or deposited is not due, or

(b)the whole or part of any dfnVAT credit due to the appellant has not been paid,

so much of that amount, or of that credit, as the tribunal determines not to be due or not to have been paid shall be paid or repaid F824....

(3)Where on the appeal the tribunal has determined that—

(a)the whole or part of any disputed amount not paid or deposited is due, or

(b)the whole or part of any dfnVAT credit paid was not payable,

so much of that amount, or of that credit, as the tribunal determines to be due or not payable shall be paid or repaid to HMRCF825 ....

F826(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F826(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Definitions used in section 85A 4

tribunal

In this Act “tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

Defined in s.82 · see it in the full Act

“tribunal” has the meaning given by section 82;

Defined in s.96(1) · see it in the full Act
VAT

“VAT” means value added tax charged in accordance with this Act;

Defined in s.96(1) · see it in the full Act
the credit

(4A) Subsection (3) above shall not require any such amount as is mentioned in paragraph (a) of that subsection (“the credit”) to be set against any such sum as is mentioned in paragraph (b) of that subsection (“the debit”) in any case where—

(a)an insolvency procedure has been applied to the person entitled to the credit;

(b)the credit became due after that procedure was so applied; and

(c)the liability to pay the debit either arose before that procedure was so applied or (having arisen afterwards) relates to, or to matters occurring in the course of, the carrying on of any business at times before the procedure was so applied.

Defined in s.81(4A) · see it in the full Act
HMRC

“HMRC” means Her Majesty’s Revenue and Customs;

Defined in s.96(1) · see it in the full Act

Cases considering section 85A 4

The Commissioners for HMRC v Colaingrove Limited

[2025] UKUT 360 (TCC) · 22 October 2025

Treated as part of the statutory interest infrastructure capable of providing an adequate indemnity for EU-law purposes. Its existence left no scope for the proposed conforming interpretation. (see paras [122]-[128])

Snow Factor Limited v The Commissioners for HMRC

[2019] UKUT 77 (TCC) · 1 March 2019

Applied as the rule that VAT determined by the First-tier Tribunal to be due must be paid to HMRC, even though the determination is subject to further appeal, unless section 85B relief applies. (see paras [57]-[59]; [79])

Littlewoods Limited and others v Commissioners for Her Majesty’s Revenue and Customs

[2017] UKSC 70 · 1 November 2017

The power to award interest following an appeal decision is an example of a statutory liability preserved by section 78(1) (see para [38]).

What each judgment says about section 85A is in the case-law panel in the full Act.

Amendments and notes

4 notes from legislation.gov.uk

Amendments

  1. F823Ss. 85A, 85B inserted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 223
  2. F824Words in s. 85A(2) omitted (with effect in accordance with art. 1(3)(b) of the amending S.I.) by virtue of The Finance Act 2009, Sections 101 and 102 (Value Added Tax) (Late Payment Interest and Repayment Interest) (Exceptions and Consequential Amendments) Order 2022 (S.I. 2022/1298), arts. 1(3)(a), 3(14)(a)
  3. F825Words in s. 85A(3) omitted (with effect in accordance with art. 1(3)(b) of the amending S.I.) by virtue of The Finance Act 2009, Sections 101 and 102 (Value Added Tax) (Late Payment Interest and Repayment Interest) (Exceptions and Consequential Amendments) Order 2022 (S.I. 2022/1298), arts. 1(3)(a), 3(14)(b)
  4. F826S. 85A(4)(5) omitted (with effect in accordance with art. 1(3)(b) of the amending S.I.) by virtue of The Finance Act 2009, Sections 101 and 102 (Value Added Tax) (Late Payment Interest and Repayment Interest) (Exceptions and Consequential Amendments) Order 2022 (S.I. 2022/1298), arts. 1(3)(a), 3(14)(c)