19 May 2000
The review centres on Greater Manchester Police's belief that it should be able to reclaim VAT paid on the purchase of official cars. It is arguing that the VAT costs should never fall on council tax payers where public bodies are carrying out their public duties.
GMP is claiming just over £500,000 from Customs for the period January 1993 to August 1995. But a further 33 forces have also submitted claims for the same period in association with tax consultants Williams Jeffery Barber. With interest, the total figure could reach £25m.
A judgment is expected in the next few weeks.