Bingo tax ruling could lead to £500m payout
29 Jun 09
Rank Group, the bingo and casino operator, has won a High Court case in its claim for a £62m refund, which could pave the way for other gaming companies to recover as much as £500m in overpaid tax
The court said Rank was entitled to its refund from value added tax overpaid on slot machines and bingo takings. This follows some UK gaming and bingo machines being exempt from VAT while similar machines were subject to the tax - a disparity illegal under EU law.
The judge said that there were over 1,000 similar claims outstanding. Deloitte estimated that £500m could be returned, with pub chains, bookmakers and amusement arcade operators among those having made similar claims to get VAT repaid.
Those running fruit machines at motorway service stations and holiday camps could also be in line for refunds, said Barney Horn, indirect tax partner at Deloitte.
HM Revenue and Customs said it would consider the case before deciding whether or not to appeal. HMRC added it would soon issue guidance.