Tax Raise on UK Gaming Duty
The UKs Chancellor Gordon Brown has announced heavy increases on gaming tax in this years budget. Many online gambling companies operating from tax havens in Gibraltar, Malta, Alderney and Cyprus, are not expected to return under these conditions.
What the budget means for the UK:
• The 2.5% starting band of gaming duty has been scrapped.
• Remote gambling will not be liable for VAT
• 15% remote gaming duty on companies moving from offshore to the UK
• 50% tax band for casino operators with revenues above £10m
Last year the UK Treasury earned GBP175 million from gambling duties. It has estimated an extra £35 million will be added from these new tax rates.
A spokes person from Aspinalls casino in Mayfair, London, said, 'It's insane. They spend years deregulating the industry and then overtax it, a license fee would have made more sense.'
The Remote Gambling Association said it was disappointed that the UK had effectively priced itself out of the online gambling market and 'missed a real opportunity to lead the way in terms of international regulatory standards.'
However, Chief Executive Clive Hawkswood did acknowledge that it wasn’t all bad news. “The VAT issue was the scary one, but it has been put to bed for now.”
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What the budget means for the UK:
• The 2.5% starting band of gaming duty has been scrapped.
• Remote gambling will not be liable for VAT
• 15% remote gaming duty on companies moving from offshore to the UK
• 50% tax band for casino operators with revenues above £10m
Last year the UK Treasury earned GBP175 million from gambling duties. It has estimated an extra £35 million will be added from these new tax rates.
A spokes person from Aspinalls casino in Mayfair, London, said, 'It's insane. They spend years deregulating the industry and then overtax it, a license fee would have made more sense.'
The Remote Gambling Association said it was disappointed that the UK had effectively priced itself out of the online gambling market and 'missed a real opportunity to lead the way in terms of international regulatory standards.'
However, Chief Executive Clive Hawkswood did acknowledge that it wasn’t all bad news. “The VAT issue was the scary one, but it has been put to bed for now.”
Click here for Casinos
