Government acts to stem flow of bookmakers offshore with betting tax move

Government acts to stem flow of bookmakers offshore with betting tax move

Customs & Excise today launched a consultation process aimed at warding off the threat caused by the growing popularity of 'tax-free' internet and offshore bookmaking.

General betting duty applies to bets placed with a bookmaker in the UK other than at a racecourse. Bookies generally make a total deduction of nine per cent on bets to cover the duty – their 1.25% contribution to the Horserace Levy and administrative costs.

Customs will consult on reforming general betting duty to enable the gambling and racing industries to flourish in the internet age.

There is good news for seaside towns, as the chancellor announced he is abolishing duty on certain types of slot machines traditionally found in seaside arcades. Duty on the type of jackpot machines found in social clubs will also be cut.

The consultation exercise will run until 30 June 2000. The government intends to take a decision on the way forward in time for the chancellor’s autumn Pre-Budget Report, and hopes to make any necessary legal changes in next year’s Budget.

The consultation follows a move in May 1999 by Victor Chandler International which operates from a base in Gibraltar, started offering ‘tax-free’ telephone bets to UK customers, levying a deduction of three per cent

The three largest UK bookmakers have, over the last year, also moved some of their operations offshore, and some smaller offshore operators have also started targeting the UK market. Typically, these bookmakers offer nil deductions over the internet and three per cent over the telephone.

Bookees bet on moving offshore as Budget disappoints

Related Articles

Supreme Court rules against Pimlico Plumbers in landmark employment case

Legal Supreme Court rules against Pimlico Plumbers in landmark employment case

1w Alia Shoaib, Reporter
Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

2m Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

3m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

5m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

6m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

7m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

8m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

8m Emma Rawson, ATT Technical Officer