HM Revenue & Customs has issued a business brief inviting taxpayers to submit a claim for overpaid VAT.

This will be of particular interest for those dealers who were unsuccessful during the initial round of claims relating to demonstrator vehicles.

The refund will include interest (possibly at the compound rate) which could potentially double the claim. However, the brief states that any refund (plus additional interest) will have to be paid back to Customs if they win the ‘lead’ cases which will be heard in the House of Lords next year

A spokesman for Trevor Jones Chartered Accounts said: "Dealers can submit a claim if a claim has already been submitted, and paid, but was capped for a three year period, or has overpaid VAT prior to December 1996 but was not allowed to submit a claim due to the capping provisions."