The very long running case of HMRC v Aimia Coalition Loyalty UK Ltd (formerly known as Loyalty Management UK Ltd (LMUK)) [2013] UKSC 15 has returned from the CJEU for final consideration at the Supreme Court. This follows decisions at all of the VAT courts since 2003.

The CJEU had considered LMUK’s position at the same time as a broadly similar scheme relating to Baxi. The question raised by these schemes is whether VAT can be reclaimed on costs incurred by a promoter of a customer incentive scheme which involves the customer earning points and then redeeming them for goods.