Taxation of gambling in the UK
Produced in partnership with Carl Rohsler of Memery Crystal
Taxation of gambling in the UK

The following Tax guidance note Produced in partnership with Carl Rohsler of Memery Crystal provides comprehensive and up to date legal information covering:

  • Taxation of gambling in the UK
  • Introduction
  • Overview
  • Geographical scope of tax
  • General Betting Duty (GBD)
  • Gaming Duty (GD)
  • Remote Gaming Duty (RGD)
  • Machine Games Duty (MGD)
  • Bingo Duty (BD)
  • Lottery Duty (LD)
  • more

Introduction

This Practice Note gives an introduction to the taxation regime relating to gambling in the UK. The UK tax treatment of gambling underwent a significant change in 2014 under Part 3 of the Finance Act 2014 (FA 2014). FA 2014 was given Royal Assent on 17 July 2014 and mainly came into force on 1 December 2014. It replaced the Betting and Gaming Duties Act 1981.

Overview

Different forms of gambling are subject to different duties under English law. There are essentially seven types of gambling duty in force from 1 December 2014.

All of the duties have the same general structure—being a tax on the net profits derived by the operator of the gambling facilities from gambling. 'Net profits' in this context is not a defined term (it is referred to differently in respect of each of the duties). Essentially, however, it means that the tax is levied as a percentage of the net amount received by the operator (being the stakes that have been placed by players in the course of the gambling), less the amount which has been returned to players in the form of prizes or winnings.

The 2014 changes to the taxation of gambling arose in the context of a new licensing regime for foreign operators who do business with UK citizens. Prior

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