Rank Group reaches £77.5 million reimbursement deal with HMRC

Rank Group reaches £77.5 million reimbursement deal with HMRC

Rank Group, a UK-based gambling corporation, and HMRC have struck an agreement about the former’s outstanding VAT refund claim on slot machine revenue. 

Rank Group – HMRC Refund Agreement

In its market report on Monday, November 22, the company announced that HMRC will reimburse £77.5 million in machine duty payments made between April 2006 and January 2013.

“The reimbursement has been approved at £77.5 million and should be received by the group shortly,” Rank stated. Interest is also payable on the claim, which Rank estimates will total almost £5.5 million. Both payments will be subject to a 19% corporate tax.”

In April 2020, the Upper Tribunal ruled in favor of Rank and Betfred’s action against HMRC for the imposition of VAT-specific levies on land-based gaming machines in error.

The bookmakers’ ten-year appeal was dismissed when Upper Tribunal judges affirmed an initial ruling that HMRC failed to create a “clear distinction between the supply of games categorized as FOBTS.”

The Tribunal Tax Chamber granted Rank a 60-day extension to resolve its final settlement with HMRC earlier this year. The business also alerted its investors that it would seek a minimum £80 million refund. 

Future Plans 

The gambling firm said the plan is to spend the refund proceeds to bolster Rank’s ongoing transformation program and balance sheet, with the settlement to be disclosed in the company’s next interim report on January 27, 2022. 

Following the judgment, William Hill confirmed that it will initiate a “gaming machines VAT challenge — in which management seeks a material net cash recovery of approximately £125-£150 million’.”

Meanwhile, Entain’s Ladbrokes and Coral businesses are projected to be eligible for a total VAT refund of £200 million.

About Rank Group

The Rank Group is a gambling company based in the United Kingdom. Rank was involved in the cinema and motion picture industry until 2006, and continues to use the Gongman logo originally used by the Rank Organisation’s film distribution subsidiary General Film Distributors. Its brands now include Mecca Bingo, and Grosvenor Casinos, the UK’s largest casino operator

About Lou De Aguila

Lou Aguila is a news and feature writer for Golden Casino News. For over a decade, Lou has published news and featured articles for some of the most reputable sports betting and online casino sites in the world, including BetNow.UK, VegasOdds, and BWin. Apart from being a hardcore live casino punter, he also covers sports stories in North American leagues from time to time.