UK to Tax Overseas Gambling Operators
August 19, 2013 Taxation in UK
LONDON – The government hopes to collect GBP 300 million more per year by tightening the tax net on online gambling.
Late last week the HM Treasury released a discussion paper on new rules for the taxation of revenues earned by international online gambling operators who offer services and products to UK customers.
The Treasury is calling for the taxation of online gambling to be shifted towards the “place of consumption”, and not the “place of production”, meaning that even companies based outside of the UK will be liable to pay taxes on profits garnered in the UK.
The taxes which will be charged the profits are remote gaming duty, general betting duty, and pool betting duty, which are all set at 15 percent, and applied based on the type of gambling activity offered.
The HMRC estimates that the new rules will lead to the collection of an extra GBP 300 million in taxes per year.
The Economic Secretary of the UK Treasury Sajid Javid explained that the newly proposed rules will ” …ensure that remote gambling operators who have UK customers make a fair contribution to the public finances.”
The Treasury is now welcoming public opinion on the suggested changes, and expects to draft the legislation by the end of this year.
The Treasury currently estimates that the new taxes could come into effect on December 1st 2014.
Photo by T.R.G.