HMRC has informed Sportech, the UK gambling group, that it has applied to the Upper Tier Tribunal for permission to appeal against the decision of the First Tier Tribunal on a VAT refund potentially worth more than £80m to the firm.

The First Tier Tribunal (FTT) tax chamber's March finding in favour of owner of the Football Pools, concerned the VAT treatment of its 'Spot the Ball' game, for the period between 1979 and 1996.

The taxman originally 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.

Sportech said it had been advised that it should expect to hear whether HMRC have been granted the right to appeal in around four weeks.

An HMRC spokesman said: 'HMRC has applied to the Upper Tribunal to appeal against the First Tier Tribunal decision in Sportech'.