Sportech wins right to appeal £93m tax judgement
Long-running VAT dispute will be heard in the court of appeal later this year
Sportech’s long-running battle with Her Majesty’s Revenue and Customs (HMRC) is set rumble on after the operator this morning revealed it had been granted the right to appeal a recent ruling ordering it to repay £93m in disputed tax payments.
The London-based firm said the appeal, regarding overpayments in VAT related to a ‘Spot the Ball’ competition run by Sportech subsidiary Littlewoods between 1979 and 1996, will be held in the Court of Appeal later this year.
The operator had been awarded the £93m sum in June, however, the Upper Tribunal ruled it must repay the sum in full after HMRC successfully challenged the judgment in September – a decision which wiped 25% off the company’s share price.
The tussle over the disputed VAT payments dates back to 2010 when Sportech’s claim was initially rejected, however, it successfully lodged a formal appeal against the decision in 2013 and had hoped for an additional £3m payment following the HMRC appeal.
Sportech’s share price was up almost 2% to 64p at the time of writing.