25th Aug 2021 08:56
(Alliance News) - Rank Group PLC on Wednesday noted the decision by the UK tax authority to not appeal the tribunal decision on Rank's VAT refund claim, meaning the casino operator stands to receive a refund of around GBP80 million.
Rank and HM Revenue & Customs were originally given a 56-day period from the first-tier tribunal in early July to agree the claim size or for HMRC to lodge an appeal. However, Rank said HMRC now has decided to not appeal, and the first-tier tribunal has agreed to a 60-day extension period for settling the exact amount due.
The Maidenhead-based gambling operator, which owns Grosvenor Casinos and bingo venue Mecca, expects the VAT reclaim to be worth about GBP80 million.
The first-tier tribunal in July ruled in Rank's favour, saying it should be refunded VAT that was unfairly charged on slot machine income between April 2006 and January 2013.
It is estimated up to 1,000 other businesses are due a rebate.
Rank last week said it swung to an annual loss in financial 2021 as its venues faced strict Covid-19 lockdown measures for half its trading days.
Revenue in the year that ended June 30 was GBP329.6 million, down 48% from GBP629.7 million the year earlier. It swung to a pretax loss of GBP107.3 million from a GBP13.4 million profit.
Shares in Rank were up 2.0% at 176.00 pence in London on Wednesday morning trade.
By Josie O'Brien; [email protected]
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