Rank poised for bingo rebate

By: Copyright © 2008 The Press Association. All rights reserved.
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Mecca bingo owner Rank was in line for a £36.3 million tax rebate on takings from its interval bingo games.

The company launched an appeal against the VAT tax treatment of its "cashline" games - played by punters during the breaks between main games - in 2006.

Rank said it was "pleased" by the decision of the VAT and Duties Tribunal, which covers the three years to 2005.

HM Revenue & Customs has until July 10 to appeal the decision and if it does so Rank is unlikely to see any benefit this year.

Cashline - also known as mechanised cash bingo - accounted for more than £100 million of Rank's revenues last year.

The decision represents a small victory in a wider campaign by the bingo industry against the Treasury's tax treatment of the game.

The sector is labouring under a tax regime under which they pay VAT of 17.5% and gross profits tax of 15% on bingo participation fees. Chancellor Alistair Darling denied pleas to change the rules in March's Budget.

Sports Minister Gerry Sutcliffe is due to make an announcement about help for the bingo industry, after hearing the complaints of firms including Rank.

He is unlikely to address the double taxation issue but may ease the restrictions on games machines in clubs imposed since last September, according to reports.

Shares in Rank were up by 1% following the announcement. But Landsbanki analyst Mark Reed said: "This potential rebate, which remains for now just potential, does not change the fundamentals. There is a risk that this legal victory may negate Government's enthusiasm for any further help."