A director of an online gambling company linked to two Premier League clubs has been arrested in connection with a £21m fraud and money-laundering investigation, The Independent on Sunday can reveal. New 21% Point Of Consumption Tax For Online Gambling In The UK To Come In 2019 Published on 31st October 2018 Following the recent £2 stake limit on fixed odds betting terminals it was expected that the UK government would begin to introduce new levys and limits on online gambling. The UK gambling industry offers diverse forms of gambling to the public including casino games, sports-betting, bingo and gaming machines. All these are available on the high street and online from operators who hold the necessary licences issued by the Gambling Commission and local authorities. UK) UK Asia 10% 8% 37% 3% 32% 10% Figure 1. Net revenues for global online betting and gaming, 2012 100% = $33.8 billion (£21 billion) Source: H2 Gambling Capital Estimates The British remote betting and gaming industry continues to evolve as it faces regulatory changes, a new approach to taxation and the emergence of the mobile.
British Chancellor Philip Hammond confirmed that the tax on remote gambling will increase from 15 to 21% from October 2019.
Representing the budget for the autumn of 2018 in the House of Commons, Hammond said that the increase is necessary due to the need to compensate for the loss of income because of the government reducing the maximum FOBT rates.
In May, the country's leadership accepted recommendations of the Gambling Commission to reduce FOBT rates from £100 to £2. Initially it was assumed that the innovations would come into force in April 2019, but the implementation of the plans was postponed until October 2019.
Hammond was expected to report a tax increase of up to 20–25%.
“Taking into account that the increase in the tax on remote gambling to 25% was discussed, the figure of 21% is encouraging,” - said Clive Hawkswood, chairman of the Remote Gambling Association (RGA). - The main thing is the time that we managed to win. Six months is enough time to adapt the market to new realities.”
John White, general manager of the BACTA Entertainment Trade Group, also responded positively to the news. According to him, the organization is pleased that the government has finally decided on the timing.
“Despite the disappointment that accompanied the hesitant steps of the government, we are pleased with the final result and the period for correcting the anomaly with the FOBT rates,” - concluded White.
Recall that, according to experts at First Gaming, the UK has the highest annual income from online gambling in Europe.
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onlinecasinoselite.org › Blog › UK gambling Taxation System Explained
It’s difficult to do anything in life without having to pay the government in the form of tax. So surely the gambling industry is no exception?
If you expect you need to declare your gambling winnings to the government, you might be in for a surprise.
The gambling tax explained
The UK gambling tax system is very advantageous to players. Not only does it work out in your favour, but it is also incredibly easy to understand.
Whenever you gamble in the UK, you are not required to pay any tax whatsoever. You don’t have to pay tax on your winnings and there’s also no need to pay any tax on your initial stake either.
Uk Gambling Tax 21st
This, of course, means you don’t need to report your winnings to the taxman. If you win £5,000 at an online casino, you get to keep that amount in full! This is a great improvement on the policies of other countries where you don’t actually get to keep all of your winnings.
Who gets taxed?
So how is this all possible? The gambling industry is worth a lot of money, so why is the government not taxing it?
Instead of taxing the players, the UK government actually taxes the operators. But this wasn’t always the case. In the past, you used to pay a tax to the government either as a tax on your stake or as a tax on your winnings. What changed then?
In 2002, the UK government was concerned the British gambling industry wasn’t going to be able to compete with the rise of online gambling sites in UK. This led the government to .
As we can see today, the decision was a successful one. The UK gambling industry is still alive and well to this day.
What about professional gamblers?
Professional gamblers might actually have one of the only professions that are not actually taxed in the UK. If you are lucky enough to gamble for a living, you don’t need to pay the tax man a penny on your gambling winnings.
The reasoning for this is fairly simple. If the government was allowed to tax you for doing a certain activity such as gambling, under the current tax system, you would have the ability to claim money back from the government for your losses.
The UK government does not want to open the floodgates for everyone who loses money gambling to claim money back. Not only does this mean professional gamblers won’t ever be taxed, but it also means the gambling tax is unlikely to return any time soon.
How did operators react?
It’s no surprise that casino operators were not too thrilled about this new taxation system. Operators looked for a way to pay as little tax as possible.
Some of them starting running their businesses out of “tax haven” countries. These countries require casino companies to only pay a very small amount of tax compared to the UK. This is a big reason you will see certain countries such as Malta coming up over and over again in the gambling industry; they offer very favourable tax rates to casino operators.
Unfortunately for the operators, the UK government took a stand against this practice. They introduced the Point of Consumption Tax (POCT).
Uk Gambling Tax 21 2020
According to this tax, a casino company must pay the tax according to the country their players are living in. This means that if a UK player accesses a casino site from the UK, the operator will need to pay the UK tax on their player’s activities.
Enjoy tax-free gambling
The tax system for players in the UK is elegantly simple. You don’t pay any tax whatsoever on any kind of gambling transaction. It’s the operators who have to worry about navigating the UK tax system, not the players.
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