HMRC looks to take Sportech VAT appeal to Upper Tribunal
Operator expects to hear outcome of request to appeal within four weeks
Her Majesty’s Revenue and Customs (HMRC) is seeking permission to appeal to the Upper Tribunal over the eight-figure VAT repayment claim won by the operator last month.
The Tax Chamber of the First Tier Tribunal had found in favour of Sportech over a claim relating to taxes paid on a ‘Spot the Ball’ competition run by subsidiary Littlewoods from 1979-1996, awarding the operator £40m, plus interest which could see the final figure approach £80m.
However HMRC has met the 30 April deadline to request an appeal, and Sportech explained in a statement this morning that it had been “advised that it should expect to hear whether HMRC have been granted the right to appeal within the next 2-4 weeks”.
Sportech’s initial claim over VAT repayment was rejected in December 2010, however the London-listed business launched an appeal of its own which ultimately proved successful last month.
Analyst Nick Batram of Peel Hunt issued a ‘Buy’ recommendation on Sportech’s shares, saying “Sportech looks to have a strong case but it is a question of whether the frustration is over within four weeks or drags on until next year”.