Allegion (UK) Limited v The Commissioners for HMRC
Decision date: 7 March 2023
Neutral citation: [2023] UKFTT 273 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
Allegion appealed HMRC's refusal of a retrospective VAT bad debt relief (BDR) claim covering supplies from 1 April 1989 to 19 March 1997. The Tribunal found the appellant failed to discharge the burden of proof that historic bad debts arose, that BDR had not already been claimed by a group member, and that the amount could be reasonably estimated, and dismissed the appeal. The Tribunal preferred contemporaneous documents (including HMRC Schedules indicating prior BDR/factoring) and gave little weight to long‑dated witness recollection. No detailed quantification of any entitlement was reached.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: medium
The Tribunal applied and endorsed the approach that a claimant in historic BDR claims must prove on the balance of probabilities: (a) historical bad debts occurred, (b) BDR was not previously claimed on those debts, and (c) the amount now claimed can be reasonably estimated; contemporaneous documentary evidence indicating prior claims by group members can make it more likely the claimant itself previously claimed BDR absent reliable contrary evidence.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal indicated that long‑dated witness recollections should be given limited weight in commercial historical disputes and that HMRC's historic Schedules, even if partially unsigned or prepared long ago, may be self‑explanatory and admissible to prove relevant historical facts where original authors are unavailable.