Gambling: Taxation and Gaming Machines

In November 2013 we reported on two cases between HMRC and Rank Group PLC, full details of which can be viewed here in our article: "Taxation and Gaming Machines - HMRC - v - Rank Group PLC - Developments".  

The cases focused on two aspects the first being how the result of the games are determined and whether that affects the type of machine from a VAT perspective. The second revolving around what Rank perceives as similarities between two machines; the disputed machines in this case being Fixed Odds Betting Terminals ("FOBT's"),

Following the hearing Rank applied for leave to Appeal to the Supreme Court and the decision of the Court is Rank has lost its case.
The full judgment can be viewed here. However the main implications following the case are:

• Gaming machine VAT claims for the period 2002-5 - clearly this loss is a significant blow but the matter is far from dead. A separate Rank case has been remitted to the First-tier Tribunal (FTT) and should now be heard.
• Conde Nast / Fleming gaming machine claims - these appear certain to fail now but any business that has submitted a claim should take advice based on its specific circumstances.
• Post 2005 VAT gaming machine claims - this case has no impact on these claims. 

We shall keep you updated as to the next development and in particular in relation to the FTT.