Littlewoods has won a £1.2bn tax refund after a landmark ruling ordered HM Revenue and Customs to pay back an overpayment of VAT.

Home shopping giant Littlewoods made the overpayment between 1973 and 2004.

The case could have significant implications because it takes into account the interest’s compounded value over the years.

Littlewoods has already received a £200m refund for VAT that was wrongly levied between during the 30 year period but the company argues it should receive compound rather than simple interest.  

However, HMRC has said it intends to appeal the ruling of the legal fight which has already gone to the European Court of Justice.

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