GVC set for £200m refund due to overpaid tax on gaming machines
GVC Holdings has estimated it will receive approximately £200m ($244.4m) from a rebate because of overpaid tax paid on gaming machines from 2002 to 2013.
HMRC has decided not to appeal a ruling in the cases of Betfred and Rank Group which found the gaming industry had been overpaying VAT on certain gaming machines and fixed-odds betting terminals (FOBTs).
The UK Government introduced a £2 stake limit on FOBTs in April 2019, reducing the previous limit of £100 per go.
GVC believes it is eligible for a rebate of incorrectly paid VAT on gaming machine revenue from Ladbrokes betting shops, between 1 October 2002 to 31 January 2013, which will result in a cash inflow boost.
The case regarding the Rank Group dispute was based on the VAT liability of betting using certain gaming machines prior to 5 December 2005.
Betfred owners the Done Brothers’ case related specifically to the tax treatment of FOBTs, prior to 31 January 2013.
Yesterday, William Hill stated it could receive a net cash recovery of £150m in overpaid tax on FOBTs during the same period of 2005 to 2013.
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