TaxCorporate TaxOffshore bookmakers set to pay UK tax rates

Offshore bookmakers set to pay UK tax rates

Gambling reforms could lead to offshore businesses paying the 15% UK tax rate on profits

BOOKMAKERS will have to obtain a licence to do business in the UK in an attempt to make offshore operators pay the same tax as UK-based companies.

The government yesterday published its revision of gambling regulations; gambling minister John Penrose said its proposals were a “significant step in the right direction” to level the playing field between UK-based and offshore companies but that it was up to the Treasury to change the tax rules.

The Financial Times reports that this might lead to operators located in low-taxation regimes paying the same 15% tax on their gross profits in the UK as is paid by land-based operators.

Penrose said: “Overseas operators get an unfair advantage over UK-based companies and British consumers who gamble online may have little or no protection depending on where the operator they deal with happens to be based.”
Ladbrokes and William Hill are among the bookmakers that have moved their online operations offshore.

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