Sportech VAT case heads to Upper Tribunal

Sportech’s lengthy spat with Her Majesty’s Revenue & Customs (HMRC) over a £40m plus interest tax repayment looks set to drag on after the country’s highest tax court approved the government department’s appeal.

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. However the tax tribunal refused HMRC’s appeal.

Yet with the Upper Tribunal granting permission yesterday for the HMRC’s appeal to be heard, Sportech will have to wait even longer to find out if the windfall is coming its way. The operator has been advised that the case will now be listed for a hearing in early to mid-2014.

The news of the appeal hearing saw Sportech’s share price drop by more than 10% on Thursday.

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.

The operator was awarded £40m plus interest, which could see the final figure exceed £80m.