|The long awaited introduction of untaxed betting to the U.K has been brought forward from 1st Jan 2002 to 6th Oct 2001, offering punters the chance to enjoy a tax-free flutter three months earlier than the Treasury originally announced. |
The tax on betting has been dropped after Gordon Brown announced in March that he would replace it with a 15% tax on bookmaker’s gross profits. The abolition of the 9 pence per pound deductions is an attempt to bring offshore betting companies back to Britain and keep them there.
The Treasury has predicted a 200 million pound loss in tax for the first two years of the scheme, but expect to enjoy continuing profit after those years are up. The Financial Secretary Paul Boateng said of the reforms, “Our reforms mean punters will get tax-free betting, bookmakers will see increased turnover and both racing and government revenues will share in benefits.”
Boateng also voiced his opinions on the danger of gambling addiction being encouraged through the new reforms saying, “It is infinitely better for people who are going to gamble that they gamble in properly regulated venues that are responding, as our betting industry now is, to the challenge of making gambling premises the sort of places where addictions aren’t fed.”