Remote gambling is growing in popularity in the United Kingdom. According to the survey conducted by the Gambling Commission, as of March 2010, 10.7% of the 8,000 adults surveyed said they had participated in at least one form of remote gambling in the previous 4 weeks. The section, named ‘Income From Other Sources’ requires tax to be filed against any profits made through online gambling, lottery, sports betting, online gaming, etc. The tax levied on such income is 30% excluding the cess. The net amount totals to 31.2%, including cess. This tax has no regard for the amount won or games played.
Online betting companies based in offshore havens to sidestep Britain's gambling taxes will be hit with a new levy that may raise £300m for the taxpayer.
The Government is to impose a 15% tax rate on operators in the £2bn remote gambling market.
The rules state that from December 2014 gambling must be taxed according to where customers are based rather than where the online operator is registered.
Such a system would replace one under which the gambling industry pays a voluntary levy equivalent to 0.1% of their revenues. Applied to the £14.4bn in revenue that gambling firms made in the. In 2014 an amendment to the 2005 Gambling Act the tax legislation was issues. This contained a new 15% point of consumption tax on all gross profits. This now meant off shore companies were obliged to pay tax on profits earned from UK based customers to the UK treasury.
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'It is unacceptable that gambling companies can avoid UK taxes by moving offshore, and the Government is taking decisive action to ensure this can no longer happen,' Economic Secretary to the Treasury Sajid Javid said.
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'These reforms will ensure that remote gambling operators who have UK customers make a fair contribution to the public finances.' Abs-cbn sunday's best time slot machines.
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The shift will affect some of the industry's largest players.
Ladbrokes, Bwin.party, William Hill and Betfair all have online operations based in Gibraltar, where taxes are levied at 1% and capped at £425,000.
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Wp gry poker texas holdem. The proposed 15% rate, which the Government said will be confirmed in its Budget statement next March, would mean that offshore operators are taxed at the same level as domestic internet betting companies.
Officials estimates that the new rules will bring in £300m a year in additional tax revenue.
Plans to bring offshore gaming companies under the UK tax system were outlined in the 2012 Budget, but the industry had been waiting for the detail - most crucially the rate at which they will be taxed.
William Hill, which has the largest share of the UK's remote gambling market, has previously suggested that it could challenge the changes on the grounds that they breach European Union competition law.
The Gambling Commission said that the estimated worldwide remote gross gambling yield (GGY) - excluding telephone betting - was £21.08bn during 2012, up 5% on the previous year.
It said the UK consumer GGY generated with operators regulated overseas, which includes telephone betting, is estimated to have grown approximately 1% between 2011 and 2012.
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The commission said remote GGY for operators licensed in Great Britain accounts for approximately 4% of the global total.