Rank and Done Brothers Decision

16th April 2020


Dear members


As you know, on 15 April, the Upper Tribunal released its decision in the joined cases of Rank and Done Brothers, relating to the VAT treatment of income from gaming machines in the period from 2002 to 2013.  I sent you the link to the judgement on Wednesday


The Upper Tribunal has held that VAT exemption should apply throughout this period and, while we expect that HMRC will seek leave to appeal against the Upper Tribunal’s decision, they may now be required to settle any claims that were stood behind the lead cases.


If HMRC are required to make repayments, claims will be subject to close scrutiny to ensure accuracy of the amounts claimed before payments are made.  Based on our experience of the way in which HMRC repaid claims in the past, we expect that alongside any repayment, HMRC will issue a “protective” assessment, allowing them to claw back any payment in the event that they are ultimately successful in the litigation.  These assessments will need to be appealed and stood behind the lead case.


We are awaiting HMRC’s response to the Upper Tribunal decision, but in the meantime I would urge you to locate the documents relating to your claims so that you are in a position to progress as soon as any announcement is made.


If you have any questions in relation to this matter, or would like to discuss with a VAT specialist, then please contact us and we will be happy to direct you appropriately.


Kind regards


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