Tax

The First-tier Tribunal (FTT) did not have jurisdiction to give effect to any legitimate expectation that a taxpayer might be able to establish in relation to any credit for input tax. The right of appeal given by s 83(1)(c) of the Value Added Tax Act 1994 was an appeal in respect of a person’s right to credit for input tax under the VAT legislation. Accordingly, if the Revenue had power (whether as part of their care and management powers or some other statutory power) to enter into an agreement with a taxpayer and that agreement, according to its terms, resulted in an entitlement to a different amount of credit for input tax than would have resulted in the absence of the agreement, the amount ascertained in accordance with the agreement might be one arising “under the VAT legislation”. In contrast, a person might claim a right based on legitimate expectation which went behind his entitlement ascertained in accordance with the VAT legislation (in that sense); in such a case, the legitimate expectation was