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HMRC internal manual

VAT Refunds

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HM Revenue & Customs
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Claims for overdeclared input tax: Who can claim: General partnerships in Scotland

Under section 4(2) of the Partnership Act 1890, 

“….In Scotland a firm is a legal person distinct from the partners of whom it is composed ….”

As a result, it is in the firm that any right to make a claim under Section 80 of the VAT Act 1994 vests and not in the partners as individuals.

Thus a claim may only be made under section 80 by the firm and payment may only be made to the firm.

Care should be taken when dealing with claims by partners of firms which have become dissolved in Scotland. Payment should be made to “ the dissolved firm of …”.

If the claimants take objection to this, for example because the bank account in the name of the firm has been closed, you should be satisfied that the partner making the claim has the authority of the other partners and that there is no duplication of claims.