Gaming business Rank has claimed back a £25m windfall after a tribunal ruled that the way Revenue & Customs treated income made from slot machines was inconsistent with EU rules. The ruling, handed down yesterday by the VAT & Duties Tribunal, means The Rank Group stands to recoup £25m in overpaid VAT. Rank, which was advised by Deloitte, argued that the position pre December 2005, under which the income from some types of gaming machine were taxable while others were exempt from VAT, is contrary to the principle of fiscal neutrality, which requires the same or similar services to be treated in the same way for the purposes of VAT. Yesterday's decision is only an interim one due to the fact the Tribunal still has a few additional points to consider. A second stage of the litigation is expected later this year or in early 2009 to confirm the decision. Barney Horn, indirect tax partner at Deloitte, said: 'This decision upholds the principles set out by the European Court of Justice in the Linnewebber case. 'The same principles should apply to any taxpayer which has paid VAT on the income from these types of gaming machine and, therefore, other taxpayers should consider if they have grounds to submit claims for overpaid VAT and interest to HM Revenue & Customs.' The Revenue declined to comment on the preliminary ruling.