William Hill estimated that it may receive a cash refund from UK tax authorities of between £125m and £150m.

The company noted that Her Majesty’s Revenue and Customer had decided not to appeal a tribunal a Betfred claim that value-added tax (VAT) was incorrectly applied to revenue from gaming machines before 2013.

‘The group has submitted claims which are substantially similar to those provided in the VAT challenge,’ William Hill said.

‘Those claims have not yet been subject to the detailed evidential and accounting reviews that will need to take place before entitlement to the refund can be settled.’

‘Whilst William Hill currently expects the net cash recovery to be material, its precise quantum remains uncertain.’

‘Nevertheless, the board has considered a number of scenarios which suggest a potential net cash recovery of between £125m and £150m.’

‘As a result of this announcement, we will now engage with HMRC to agree the support for, quantum and timing of the refund.’