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Information Sheet 5/04, 6 May 2004

This Information Sheet explains how Customs will deal with claims made based upon the decision in the GMAC High Court case.

1 Introduction

1.1 What is this Information Sheet about?

The High Court has upheld the decision of the Tribunal which found against Customs & Excise in the case of General Motors Acceptance Corporation UK Ltd (GMAC) case (LON/01/242). Customs have accepted the ruling of the High Court. This Information Sheet updates VAT Information Sheet 06/03 and outlines the basis on which Customs are now prepared to accept claims for reimbursement of tax that has been incorrectly paid to them.

2 Background

GMAC sell cars to members of the public on deferred payment terms. These deferred terms include hire-purchase (HP) agreements. Ownership of the cars covered by these HP agreements only transfers to the customer when all the required payments have been made. Providing they had made all other required payments up