Dispute centred on VAT refunds of just over 拢2m
The commercial arm of the RIBA has been forced to accept defeat in a row with the tax authorities over a disputed tax bill of nearly 拢1.6 million.
RIBA Enterprises included a possible VAT repayment of 拢1.54 million as an exceptional item in its 2015 accounts.
The long-running dispute which dates back to 2009 when it successfully claimed two VAT refunds totalling just over 拢2 million.
But the following year HMRC slapped a 拢1.54 million demand on the group which RIBA Enterprises then appealed.
Two years ago the group, which is headed by chief executive Richard Waterhouse (pictured), put the sum into a third party account so that negotiations with HMRC could continue.
In its latest accounts for the year to December 2017, RIBA Enterprises said: 鈥淪ince December 2016 the negotiations have been finalised with [the RIBA鈥檚] appeal being unsuccessful. HMRC have confirmed the case is now closed.鈥�
The company, which operates from an office at Newcastle upon Tyne as well as RIBA鈥檚 London office at 76 Portland Place, said pre-tax profits for the year was up 22% to 拢4.9m while revenue edged up 6% to 拢25.7m.
Earlier this month, the RIBA sold a large stake in RIBA Enterprises to a private equity firm for 拢31.8m.
LDC, the private equity arm of Lloyds Banking Group, has bought what is described as a 鈥渟ignificant minority shareholding鈥�.
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