Carlton Bingo wins £3.9m tax rebate

Carlton Bingo pocketed a £3.9 million tax rebate last year, thanks to a court case brought by a rival operator against the taxman.

The Inverness-based firm said in accounts filed at Companies House that it had recovered £3.4m of VAT paid on interval games – activities enjoyed by customers during breaks from bingo – plus a further £500,000 in interest, although it would have to repay the money if an appeal by HMRC saw the decision overturned.

The rebate followed a court victory by Rank Group, the operator of Mecca Bingo clubs, where judges ruled that HMRC’s practice of charging VAT on some interval games but not others breached its obligation to fiscal neutrality.

It helped boost Carlton’s pre-tax profit for 2010 to £6.8m, although the company recorded a drop in turnover from £17.4m to £16m.