DFS tax dispute gets hearing in House of Lords

DFS has raised a cheer following a decision by the Court of Appeal to refer its dispute over a£14.6 million VAT bill to the House of Lords.

The cash represents part of a£50 million tax dispute that has dragged on since the early 1990s. However, the decision by the Court of Appeal sets DFS on the last leg of a journey that will see its conclusion in the Lords, on a date as yet to be determined.

A host of lawyers, many of whom are understood to be acting on a no-win no-fee basis, has advised on the cases and each has been argued on separate points of law.

Earlier this month, DFS executive chairman Lord Kirkham tabled a 415p indicative offer for the business. However, one source close to the deal said: 'The share price has gone up. The market is saying it is not enough.'