Sportech nears £80m VAT repayment boost
Tax tribunal rejects HMRC's appeal against £40m awarded to the pools and tote betting operator in April
Sportech has edged closer to securing VAT repayment in excess of £80m after a tax tribunal refused HMRC’s appeal against the operator’s claim relating to taxes paid more than two decades ago.
Earlier this month HMRC revealed it had sought permission to appeal the UK’s First-tier Tax Tribunal’s (FTT) decision to award Sportech the seven-figure repayment relating to taxes paid on a ‘Spot the Ball’ competition run by subsidiary Littlewoods from 1979-1996. The operator was awarded £40m plus interest, which could see the final figure exceed £80m.
The pools and tote betting operator’s initial claim over VAT repayment was initially rejected in December 2010, however the it launched an appeal of its own which ultimately proved successful in April.
Sportech CEO Ian Penrose told eGaming Review he was “very pleased” with the decision of the tribunal. HMRC now has the option of applying to the Upper Tribunal for permission to appeal against the decision of the FTT and have until 1 July 2013 to do so.