Charities in line for lottery tax boost
Treasury mulls changes to lottery tax to increase charity takings
Good causes could be in line for £50m boost if the Treasury forges ahead with
plans to change the way lottery funds are taxed.
The FT reports that under the current system 12% of lottery takings
go to the Treasury and are paid out as a proportion of total sales.
The government is now thinking about moving to the gross profits system, used
in other parts of the leisure industry, where taxation determined according to
the sum of money lottery payers stake less the sum paid out for prizes.
PricewaterhouseCoopers is leading a steering group on the matter, and has
issued a report saying that the current regime offers operators no incentive to
increase lottery sales.
PwC said that using a gross profits system of taxation will incentivise
operators to increase sales, which will in turn boost tax takings and amounts
paid to charities.