Debenhams is suing Sun Alliance and London Assurance in a £450,000 battle over a commercial lease on retail premises at The Parade, Swindon.
The site was leased to Debenhams in 1971 for 99 years, at a rent of £55,000 pa, with additional rent based on a percentage of turnover, increasing to 3% of turnover of more than £3m pa.
In a High Court writ, Debenhams claims that the turnover should not include VAT – Sun Alliance contends that it should.
Debenhams is asking the court to declare that it should not include VAT and is also seeking restitution of £441,396.79 overpaid as a result of including VAT payments for the past six years.
References: EGi News 16/02/04
