UK Government Plans to Offer Huge Tax Concessions to Online Gambling Companies
LONDON, March 7, 2013 /PRNewswire/ –
After imposing taxes forcing online gambling firms overseas the UK
government is now planning to lure them back with tax breaks
The UK government is planning a u-turn on taxation in regards to online gambling. In
an attempt to deal with tax avoidance the UK government is going to actively encourage
lucrative online gambling companies back into the UK with generous tax breaks.
Seven years ago the vast majority of UK online gambling companies moved their
operations abroad to tax havens such as Malta, Gibraltar and the Channel Islands to avoid
a 15% tax imposed on all online gambling services in the UK.
However, according to recent reports the Treasury could be ready to slash this tax to
encourage online gambling companies, such as JackpotCity Casino
[http://www.jackpotcitycasino.com ], back into the UK. Although the percentage at which the
government will reduce the tax is not yet known, the Mail on Sunday reports that it could
be as much as a third; the current tax system has lost GBP2.1 billion in revenue over the
past seven years.
A reduction of 5% would save the 20 biggest offshore gaming companies GBP100 million
in tax every year. However, many online gaming companies that currently work out of tax
havens will be loath to pay the tax even at a reduced rate of 10%. But for some the deal
might be enough of a sweetener to bring them back to the UK and benefit from greater
regulation and industry support.
By moving back under the control of the UK Gambling Commission, consumers new to
online gaming will feel more inclined to give it a try, knowing it is thoroughly and
tightly controlled and regulated by the Gambling Commission, which can bring charges
against companies in breach of the rules.
More online gamers is good news for online casinos such as JackpotCity Casino.
According to figures from the Gambling Commission, online gambling earned GBP20.1 billion
between April 2011 and March 2012 and online gambling is growing at a rate of 15% annually
throughout the EU.
SOURCE JackpotCity Casino