Rank’s VAT fight drags on after another appeal

The Government today lodged yet another appeal against a test case on taxation of the gambling industry in a move that kicks a potentially embarrassing political issue into the long grass until after a General Election.

The case revolves around whether HM Revenue and Customs should have to repay the Rank group VAT that it levied on bingo and slot machines. Rank had successfully argued that it was not fair that VAT was charged on bingo stakes at more than 50p when those under 50p were exempt. Likewise, it had successfully claimed it was not fair that some slot machines were VATable and others not, depending on whether their random number generation equipment was sited under the machine or inside it.

HMRC has lost several rulings, most recently at the High Court, on the issue and has sent Rank £59.1 million in overpaid VAT over the bingo case. A host of other casinos, pub companies, bookmakers and amusement arcades are waiting for the final Rank judgment.

But now the taxman is taking the case to the Court of Appeal, which will kick off another lengthy process.