UK Betting Tax To Be Scrapped Ahead Of Schedule

by Amanda Banks, Tax-News.com, London

16 July 2001

UK Financial Secretary, Paul Boateng, has announced that the betting tax on punters will be abolished three months earlier than planned on October 6, 2001. Chancellor Gordon Brown announced in his March Budget that by January 1, 2002, the current tax on betting stakes would be replaced with a tax on bookmakers' gross profits, a radical reform which means Britain's bookmakers will end the deductions they currently charge punters, and look to grow their domestic and international business from a UK base.

In a statement released by the government, Paul Boateng explained: 'The old tax on punters has been in place almost unchanged since 1966. But we realised it was not going to work in the 21st century and would mean UK-based bookmakers losing out on the global betting market. Our reforms mean punters will get tax-free betting, bookmakers will see increased turnover, and both racing and Government revenues will share in the benefits.'

He added: 'It's a good deal all round. We're therefore delighted to bring it in more than three months ahead of schedule. This demonstrates our ability to deliver real reforms with speed and efficiency - years ago, it would have been inconceivable to introduce these sorts of radical reforms, let alone push them through so quickly.'

In response to the news John Brown, Chairman of William Hill, congratulated the government on the 'speedy implementation of the Chancellor's initiative.' He said: 'We will be ready on the day for every bet we take worldwide to come back the UK.'

Bob Scott, Chief Executive of Coral Eurobet described the October date as the 'biggest day in the history of betting,' He claimed: 'This represents a major investment by the Government in the betting industry, and one we will demonstrate has not been misplaced. For customers, bookmakers, the racing industry and the Government, this is a win-win-win-win situation.'

And Warwick Bartlett, Chairman of the British Betting Offices Association, stated: 'The British punter will be able to bet tax-free for the first time in 33 years. The onus is now on the betting industry to deliver and make the UK a centre for global gambling. We have already received enquiries from the US, Canada, Australia, Japan, the Netherlands and Sweden from bookmakers interested in coming to the UK as a result of the introduction of a gross profits tax.'

Full details on the new betting tax reforms can be found on the UK Treasury's website at: http://www.hm-treasury.gov.uk/

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