The three year time limit for claiming input VAT does not apply to claims that accrued before the time limit was introduced in May 1997. This is the effect of the decision of the House of Lords in Fleming (t/a Bodycraft) v HMRC, Conde Nast Publications Limited v HMRC 2008 [UKHL] 2, published on 23 January 2008. HMRC accepted that the failure of the UK government to provide a transitional period for the introduction of a three year cap on input VAT claims made from 1 May 1997 was a breach of EU law. The House of Lords has held by a majority that, although a UK court may in principle remedy this kind of breach of EU law by imposing or starting a transitional period, it could not do so in this case. A transitional period could only be started by legislation or by a clear and well-publicised HMRC announcement. It is virtually certain that a transitional period will be announced shortly as estimates have put the cost of this decision to the Exchequer at around £100 million. Businesses should therefore ensure that they claim input VAT accrued for periods before 1 May 1997 as soon as possible, if they have not already done so.