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Augean Plc (AUG)

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Monday 18 May, 2020

Augean Plc

Claim for Repayment of Landfill Tax

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 £11.1m 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 £40.4m 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.

 


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