Government to change gambling taxation

[Euler]

Government will tax remote gambling companies on the point of consumption basis to level out onshore vs offshore operators.

[Euler]

Am I reading this right? 15% stamp duty on homes over £2m?

[Euler]

Ok now they are saying 7%, missed something somewhere.

[hitman31]

Ok, so what does this mean in practice? Are UK-based sports traders going to be subject to tax on top of the commission that Betfair already take? How serious is this announcement?

[Euler]

It's only relevant to bookmakers. Currently you can offshore your bookmaking business to avoid paying gross profits tax. The government is effectively saying you can't do that anymore. It's a issue for corporations, not individuals.

[hitman31]

Thanks Euler! Relief!

[Boing]

Betfair will get lower profits so they may try and increase charges again.

[andyfuller]

Am I reading this right? 15% stamp duty on homes over £2m?

It must have been a very very good Cheltenham for you!

[superfrank]

It's only relevant to bookmakers. Currently you can offshore your bookmaking business to avoid paying gross profits tax. The government is effectively saying you can't do that anymore. It's a issue for corporations, not individuals.

good move and about time. they should done it as soon as the first bookie left.

they should now apply the same logic to every other company that uses offshore companies to reduce tax (then the tax can be reduced for all companies and not just those with the means to pay creative accountants).

[fuzzer54]

Betfair will get lower profits so they may try and increase charges again.

The odds are 1.01 on that one

[mugsgame]

The PC is at at critical point. It is really really tough to make it worth while paying the higher rate charge. Any more and it becomes not worth it at all.

Not trying to be clever here, but if you can work out how to win over £1/4 million you must be clever enough to earn good money somewhere else.
Well that's what I keep telling myself

The reason many bookies left the UK was to compete with the other non uk bookies in Gib. If there is a level playing field there is no reason to be there. Apart from cheaper labour costs and skills.

[andyfuller]

Gambling taxation
1.204 The current taxation regime for remote gambling has allowed operators to avoid
paying UK gambling duties by basing their operations abroad. To broaden the tax base and
provide a fairer basis for competition between UK and overseas remote gambling operators,
Budget 2012 announces that the Government will move to a tax regime that ensures
operators anywhere in the world pay gambling duties on gross profits generated
from customers based in the UK. This is in line with the actions of several other European
countries.

Income from it:

24 Gambling: place of consumption Tax:

£ million

2012-13 –15
2013-14 –20
2014-15 +55
2015-16 +240
2016-17 +270

[superfrank]

and the weather!

[steven1976]

I agree with you mugsgame that the top payers are smart people and the majority do have the ability to be succesful in other areas as they are quick and smart at identifying opportunities.

The thing that needs to be considered if they walked away from the exchanges into a 250K a year job is you would still be paying 50% tax with all the downsides of working extremely long hours. If not working in a job and you were running your own company and earning 250K a year you would have all the additional headaches and responsabilities that go along with running a business and employees.

My advice to you would be take your 250K a year and look at developing your potential on the side and see if you feel it is for you.

[LeTiss]

I suspect we'll see a fairly well established bookmaker being the subject of a takeover within the next 12 months