Sportech share price jumps as court refuses HMRC appeal over Spot the Ball taxes
Shares in pools operator Sportech have jumped by over 15 per cent today, after its success in the latest round of its legal battle with Her Majesty's Revenue and Customs (HMRC).
The Court of Appeal has refused HMRC permission to appeal its judgment in favour of Sportech relating to a £97m tax repayment claim to the Supreme Court.
The Liverpool-based football pools and horse race betting group first launched its claim against VAT on its Spot the Ball game in 2009, saying it was a game of chance, not skill, and was successful in an initial appeal – but HMRC then contested the result.
In 2014 Sportech was told to give HMRC £93m in back taxes after its Spot the Ball game was ruled as a game of skill not chance.
However, earlier this month the appeals court ruled in Sportech's favour, finding that the company was owed a £97m refund for taxes paid between 1979 and 1996.
HMRC now has the option of applying directly to the Supreme Court for permission to appeal against the decision of the Court of Appeal and has until 17 June 2016 to make such application.