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December 2014 For New British Gambling Tax
Monday January 21, 2013 : DECEMBER 2014 DATE SET FOR NEW ONLINE GAMBLING REGIME IN BRITAIN
Tax rates as yet uncertain for secondary licensing system based on point-of-sale
The new online gambling regulations in Britain, based on point of sale and requiring offshore internet gambling companies wishing to access the UK market to pay taxes and take out licensing with the UK Gaming Commission, will be implemented in December 2014 according to government advisories.
What is not yet certain is the tax rate that will be applied, and that will be made known only when the Treasury submits amendments in support of the licensing changes, ensuring that operators everywhere who make profits from UK punters pay the requisite tax.
Because the tax will only be levied on revenues generated by British gamblers, there is speculation that some UK-based companies could benefit from the new dispensation, because their profits from gamblers outside the UK will be exempt, although they will continue to pay corporation tax.
Experts have warned that if the current UK gaming tax rate of 15 percent of gross profits is applied it could have a negative effect, having already motivated a number of major UK companies to relocate their online gambling divisions to more tax-friendly jurisdictions.
A William Hill-commissioned study by independent professional services provider Deloittes last year warned against such a high tax rate and its consequences, which would be counter-productive to the aim of persuading companies to get with the new UK program.
Thus far Treasury has played its cards close to its chest, revealing only that it continues to work with both the industry and government on the project.
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