Supermarkets win ruling against HMRC

Following a court battle over business rates on cash machines, three of Britain's biggest supermarket groups have won a legal victory worth up to £500m.

 

The court of appeal has ruled that cash machines located both inside and outside stores should not be liable for additional business rates, which are a form of property tax on businesses collected by the government.

 

The tax rules set by the Valuation Office Agency claimed that ATM's should be additionally assessed. This has been successfully challenged by several retailers including Tesco, Co-op and Sainsbury's which means the supermarket chains are in line for a multimillion pound windfall from tax refunds, estimated at around £500m. 

 

The case references a 2013 decision by the government to charge rates on "hole-in-the-wall" cash machines, which was backdated to 2010.

 

A spokesperson for the Co-op suggested the victory would help keep cash machines at its stores. "The case had threatened the viability of the ATM network and risked the future of much-needed banking services across communities."

 

MP's have heavily criticised banks for closing hundreds of branches, particularly in rural areas leaving consumers fewer options. Labour estimates that 60 bank branches and 250 free cash machines close every month.

 

The court of appeal refused to grant the Valuation Office leave to have the case heard in the supreme court.

 

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