MOLLER V ONE TOUCH SOLUTION LIMITED & HISCOX INSURANCE COMPANY LIMITED [2026] EWHC 14 (Comm)
Where an insured company is in liquidation, VAT on assessed costs may be recoverable by the estate under Regulation 111(5) of the VAT Regulations 1995. The paying party is not liable for VAT where no actual loss has been suffered by the receiving party.
The recoverability of VAT on costs is determined by the ability of the party to whom the legal services were supplied (the ‘receiving party’) to reclaim that VAT as input tax, not by the ability of a third-party funder or insurer who may have paid the bill. [5, 7]
Where a company in liquidation is the receiving party, its estate may still recover VAT on post-liquidation legal services if those services are attributable to taxable supplies made during its period of VAT registration, pursuant to Regulation 111(5) of the Value Added Tax Regulations 1995. [6, 7, 8]
A party cannot recover, as part of a costs order, a sum representing VAT if that party has not suffered, and will not suffer, an actual loss in that amount because the VAT is recoverable from HM Revenue & Customs. [8]
The general principle that the unsuccessful party should pay the costs of an issue applies to discrete procedural disputes, such as a contested point on the assessment of costs, following the provisions of CPR Part 44. [10.1]
Where a discrete issue is directed to be determined on written submissions, the costs of preparing those submissions may be awarded to the successful party, provided the sum claimed is reasonable and proportionate. [10.2, 11]
https://tmclegal.co.uk/wp-content/uploads/2023/08/newlogo_bg-removed_tm-300x142.png00Toby Moretonhttps://tmclegal.co.uk/wp-content/uploads/2023/08/newlogo_bg-removed_tm-300x142.pngToby Moreton2026-01-08 14:52:232026-01-08 14:52:23MOLLER V ONE TOUCH SOLUTION LIMITED & HISCOX INSURANCE COMPANY LIMITED [2026] EWHC 14 (Comm)
