http://www.thejournal.ie/online-betting ... 16-Feb2015
read that here in Ireland the government have put through a bill for a 1% tax on all online betting activity. Is there any betting tax in the UK?
I assume the exchanges will be affected in the same way as any other online bookmaker by this
Betting Tax
Having read some more about it , it seems Betfair is quite happy to make it a tax on Gross Profits, rather than a tax on turnover which would have hit them harder
15% gross profit tax. will they just pass that onto the us as a tax on each winnig trade I wonder so it wont effect them much
15% gross profit tax. will they just pass that onto the us as a tax on each winnig trade I wonder so it wont effect them much
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marksmeets302
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This will be very messy. Most countries outside the UK already tax profits from gambling. It would not be right to pay twice (or once, but that's a different story 
)
The same situation applies to dividends received from companies outside your own country. Thanks to tax treaties, for most countries, I'm not taxed twice. But I severely doubt the governments will make these efforts for gambling profits. If they don't, making money from trading on betfair becomes a lot less attractive: first commissions, then premium charge, then the UK tax and over what's left you pay your own countries tax. For me it would mean a net result of 42 at a gross of 100. But it is the most likely outcome: my government makes it no secret that they hate initiatives like betfair because they have so little control over them. Whatever they can do to discourage people from using betfair, they will do.
)The same situation applies to dividends received from companies outside your own country. Thanks to tax treaties, for most countries, I'm not taxed twice. But I severely doubt the governments will make these efforts for gambling profits. If they don't, making money from trading on betfair becomes a lot less attractive: first commissions, then premium charge, then the UK tax and over what's left you pay your own countries tax. For me it would mean a net result of 42 at a gross of 100. But it is the most likely outcome: my government makes it no secret that they hate initiatives like betfair because they have so little control over them. Whatever they can do to discourage people from using betfair, they will do.
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marksmeets302
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- Joined: Thu Dec 10, 2009 4:37 pm
Will get even messier... Betfair will have to pay different tax rates to different governments. Apparently for the UK it's 15%, for the Netherlands it will be 20%. It could very well be Betfair will charge those different rates to their respective customers. Very likely, as they already use different commission schemes for people in different countries.
For dutch betfair users: Although not entirely clear, it looks as if after the 20% tax on betfair, the gamblers themselves will still be taxed at 29% over their winnings (if higher than 454 euros). So the situation will be worse than before, when we "only" had to pay 29% over our winnings.
For dutch betfair users: Although not entirely clear, it looks as if after the 20% tax on betfair, the gamblers themselves will still be taxed at 29% over their winnings (if higher than 454 euros). So the situation will be worse than before, when we "only" had to pay 29% over our winnings.
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WinningStreak
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- Joined: Tue Apr 14, 2015 1:06 pm
Betfair will be passing the tax on to their customers I believe, they made a statement on their site a few days ago.I think the gross profit tax will only apply to profits made on Betfair customers within the UK, and soon Ireland. If you are in Netherlands you should not be effected.
i am not sure if betfair are paying this tax or passing it on