Augean Plc Claim for Repayment of Landfill Tax (1129N)

TIDMAUG

RNS Number : 1129N

Augean Plc

18 May 2020

Augean plc

("Augean" or "the Group")

Claim for Repayment of Landfill Tax

Augean, one of the UK's leading specialist waste management businesses, announces that it has today lodged a claim with HMRC for repayment of GBP11.1m of Landfill Tax ("LFT") including interest overpaid in relation to engineering materials used as part of its landfills cell construction (colloquially referred to as the 'Fluff layer').

This protects the Augean position in the light of legal challenges brought by other waste site operators that have successfully argued before the Upper Tax Tribunal that they can reclaim LFT accounted for on the 'Fluff layer'. HMRC has challenged the Upper Tribunal decision and it is expected the matter will be heard in the Court of Appeal at a yet to be determined date. The outcome of that appeal will have a direct bearing on the claim filed by Augean.

The claim is in part a reclaim of Landfill Tax overpaid and in part a set off against the GBP40.4m Landfill Tax assessment paid (and subject to challenge by Augean in the First Tier Tribunal) in December 2019. The period of the 'Fluff layer' claim dates back to August 2013. The claim will be accounted for as a contingent asset.

Augean has decided to reclaim the relevant LFT at this point given the success of other operators in the Upper Tax Tribunal. If the Group succeeds in its endeavours to reclaim the LFT the final quantum remains uncertain and the value quoted above excludes legal fees and other costs associated with the claim.

Jim Meredith, Executive Chairman of Augean, said:

"The Group has watched with interest the waste industry's progress in its legal claims against HMRC. It seemed appropriate for the Group to follow the rest of the industry in making claims, particularly having paid the assessments in full in December 2019, and the Group hopes to see a repayment of tax following the Court of Appeal decision."

- Ends -

Enquiries:

 
Augean plc 
 Jim Meredith, Executive Chairman 
 Mark Fryer, Group Finance Director   01937 844 980 
N+1 Singer 
 Shaun Dobson 
 Peter Steel 
 Rachel Hayes                         020 7496 3000 
 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

MSCEELFFBELEBBZ

(END) Dow Jones Newswires

May 18, 2020 02:00 ET (06:00 GMT)