Tesco and Sainsbury's win court appeal against business rates for cash machines

Tesco said it welcomes the Appeal Court's ruling and the "confirmation of our belief that ATMs should not be separately rateable"

Retailers will be refunded £300mln in charges

J Sainsbury PLC (LON:SBRY) and Tesco PLC (LON:TSCO) have won an appeal against a court ruling that requires retailers to pay business rates for cash machines outside their shops.

Supermarkets and convenience stores have been liable to pay millions of pounds in rates on machines since 2010.

READ: Former Tesco directors go on trial over alleged profit overstatement

But the Appeal Court has ruled that about £300mln that retailers have been charged will be refunded, with some of the money to come from the government and local authorities.

The court said the Valuation Office, which brought the original case, will not be allowed to appeal to the Supreme Court. However, it can still petition the Supreme Court.

READ: Sainsbury's profits drop as it takes hit related to proposed Asda merger

Tesco said: "We recognise the vital role that ATMs play in the daily lives of our customers and remain committed to providing this service to them.

"We welcome today's result and the confirmation of our belief that ATMs should not be separately rateable."

Quick facts: Tesco

Price: £2.16

Market: LSE
Market Cap: £21.16 billion

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