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UK To Introduce Remote Gaming Duty In September

by Robert Lee, Tax-News.com, London

15 August 2007


HM Revenue and Customs has announced that a tax will be introduced on the gaming profits of remote gaming operators on September 1, 2007, to coincide with the full implementation of the Gambling Act 2005.

HMRC confirmed that the remote gaming duty will be 15% of a remote gaming provider’s profits at the end of each accounting period. This is the difference between stakes and payments due for participating in remote gaming, less amounts that the operator has paid out as winnings during the accounting period.

Remote gaming, according to HMRC, means playing a game of chance for a prize through any kind of remote communication, for example via the internet, telephone or interactive TV.

All remote gaming providers with an operating licence issued by the Gambling Commission are liable to pay remote gaming duty on all the profits from gaming unless the remote gaming is already liable to another UK gambling duty, or is specifically exempted from another UK gambling duty. Remote gaming duty is also chargeable on the illegal provision of remote gaming in the UK, for example, where the provider is not licensed to provide such gaming (in Great Britain) or where the provision of remote gaming is prohibited (in Northern Ireland).

The provision of remote gaming is exempt from VAT.

HMRC is urging all remote gaming firms with a GB licence to register with the department, warning that failure to register will result in civil penalties, under section 9 of the Finance Act 1994.

A comprehensive report in our Intelligence Report series examining offshore e-commerce and online gaming is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report6.asp

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