Betting tax reform plans
The government has announced plans to reform betting tax, following consultation after the last budget.
In the pre-budget report, the government said it believed there was ‘scope to modernise the way betting is taxed in the UK that would provide the right competitive environment for the UK betting industry to thrive, both domestically and internationally.’
The government wants the industry to take advantage of e-commerce opportunities while protecting the long-term revenues from betting duty and giving punters a better deal.
It indicated a preference for the ‘gross profits tax‘ reform outlined in a consultative document ‘Our Stake in the Future’.
This would abolish the turnover-based duty on stakes replacing it with a duty on the bookmakers’ gross profit.
Further discussions will be held with the bookies, and an announcement will be made in Budget 2001.
The bookmaking industry has been lobbying the government for changes as pressure from offshore online betting services has increased.