UK gambling group Sportech has announced that HMRC intends to appeal a recent decision on a VAT refund that could be worth more than £80m to the firm.

In March this year the First Tier Tribunal (FTT) tax chamber found in favour of Sportech regarding the VAT treatment of its 'Spot the Ball' game, for the period between 1979 and 1996.

HMRC had rejected Sportech's initial claim in December 2010, which said that 'Spot the Ball' is a game of chance and not a game of skill, and as such was free from VAT. The game is played by up to 40,000 people a week.

After the FTT decision in March, HMRC was given until 30 April to decide whether to challenge the ruling.

Sportech said today it had been informed by the tax authority that it intends to seek permission to appeal to the Upper Tribunal against the decision of the FTT.

The company expects to hear whether HMRC have been granted the right to appeal within the next two to four weeks.

The statement said: 'The board of Sportech will continue to take appropriate legal and professional advice on the group's position, and advise shareholders accordingly.'

Following the outcome of the FTT case in March Sportech said it would begin talks with HMRC to agree the amount of the claim, which was expected to be made up of more than £40m of overpaid VAT, plus interest which could more than double the total sum.