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Sam Barker 09 November 2018 1:33pm GMT Shoppers will enjoy greater access to cash machines following an Appeal Court ruling that cuts taxes on retailers hosting the devices. Shops with cash
machines have had to pay higher business rates since 2013, when the government’s Valuation Office Agency department said they would be subject to separate business rates. The decision was
backdated to 2010, and retailers were faced with large bills from their local councils. Real estate adviser Altus Group said the average yearly bill for each machine is £2,888. The number of
cash machines liable for business rates tax in England and Wales rose from 3,140 in 2010 to 15,422 this year. Councils had an incentive to charge the higher rates on the machines because
they have been able to keep 50pc of any business rate increases since 2012. Normally councils keep a percentage of the business rates they collect, then pass the rest to the Treasury. The
tax decision threatened shoppers’ access to cash, already jeopardised by the closure of many regional banks and building societies. But supermarkets Tesco, Sainsbury's and the
Co-operative, as well as cash machine operator Cardtronics Europe, launched a £300m appeal against the decision. Supermarkets argued that these machines are not part of their shops and so
should not be included in rates calculations. The Appeal Court today backed the supermarkets and said the machines will no longer be subject to the extra taxes. The Appeal Court judgment by
Lord Justice Lindblom said: "I would allow the appeals of Sainsbury, Tesco, the Co-op and Cardtronics, and dismiss that of the Valuation Officers." The decision was backed by
fellow judges Lady Justice King and Dame Elizabeth Gloster. Altus Group said this year taxes on the machines have raised £44.54m in England and Wales, and the ruling will mean tax rebates
going back to April 2010. Robert Hayton, of Altus Group, called the ruling a “victory for common sense”. The decision applies to so-called “hole in the wall” cash machines that are built
into the outside of buildings. Free-standing machines, or those mounted to indoor walls, were always exempt.