BusinessBusiness RecoveryRevenue to get second bite at Wimbledon FC

Revenue to get second bite at Wimbledon FC

Wimbledon FC faces a second battle in its war with the Inland Revenue over the validity of its vital company voluntary arrangement (CVA) after the taxman successfully won leave to appeal.

Link: Wimbledon FC survives Revenue challenge

The news will come as a blow to the club’s supporters who were celebrating on Tuesday after Mr Justice Lightman dismissed the Revenue’s challenge to the agreement, which would see Wimbledon emerge from administration into new ownership.

The Judge refused leave to appeal, but that refusal has now itself been contested – resulting in the decision to allow a rematch. The case now goes to the court of appeal on Tuesday next week.

Wimbledon – described by Mr Justice Lightman as ‘hopelessly insolvent’ – faces liquidation without the CVA. The league is also set to expel the club if it fails to pay football creditors in full, payment the Revenue argued would see the taxman unfairly deprived.

On Tuesday the Judge said: ‘The power of the League to impose the obstacle and secure full payment for creditors of its choice may be objectionable…but the obstacle exists [and] by common consent is legal.’

In a hint that it is viewing the challenge to Wimbledon’s CVA as a test case, the Revenue said: ‘We will look at the outcome of this case and consider our position after that.’

‘Grant Thornton, whose worst fears of another Revenue battle have now been confirmed, had said on Tuesday: ‘We hope that this will be a big step forward towards restructuring the club’s affairs and allowing the consortium to finally take control.’

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