I can't see any other posts about this, so I'll reproduce the article from the Racing Post website and see if anyone has any comments:
Change in policy over online betting tax
By Howard Wright 2:14PM 21 MAR 2012
CHANCELLOR George Osborne on Wednesday confirmed a change in policy over online betting, which isto be taxed at the point of consumption and not the point of supply, as at present, with the intention of capturing duty from offshore operators taking bets from UK-based punters.
Delivering the Budget in the House of Commons, Osborne said: "The current duty regime for remote gambling introduced by the last government was levied on a 'place of supply' basis. This allowed overseas operators to largely avoid it, and much of the industry has, as result, moved offshore.
"Ninety per cent of online gambling consumed by our citizens is now supplied from outside the UK, and the remaining UK operations are under pressure to leave.
"This is clearly not fair, and not a sensible way to support jobs in Britain. So we intend to introduce a tax regime based on the place of consumption, where the customer is based, not the company."
The Treasury is expected to begin a consultation period shortly, which will lead to the rate of duty being announced in either the autumn financial statement or next year's Budget.
Osborne has also set the new duty that will apply to machines played in betting shops at 20 per cent of net takings, higher than betting industry studies had suggested would match the government's pledge for a revenue neutral position.
The rate for machines games duty, which replaces both amusement machine licence duty and the VAT previously paid by betting-shop operators, was set out in the Budget on Wednesday and came into effect when a series of motions was passed inthe House of Commons.
Osborne told the House: "The VAT treatment of gaming machines is being repeatedly challenged by operators in the courts. So I will introduce a new machine games duty, with a standard rate of 20 per cent and a lower rate for low stakes and prize machines of five per cent of net takings."
Osborne also announced that from next month the government would introduce double taxation relief for remote gambling.
He said: "These changes will create a more level playing field, and protect jobs here."
Change in policy over online betting tax
By Howard Wright 2:14PM 21 MAR 2012
CHANCELLOR George Osborne on Wednesday confirmed a change in policy over online betting, which isto be taxed at the point of consumption and not the point of supply, as at present, with the intention of capturing duty from offshore operators taking bets from UK-based punters.
Delivering the Budget in the House of Commons, Osborne said: "The current duty regime for remote gambling introduced by the last government was levied on a 'place of supply' basis. This allowed overseas operators to largely avoid it, and much of the industry has, as result, moved offshore.
"Ninety per cent of online gambling consumed by our citizens is now supplied from outside the UK, and the remaining UK operations are under pressure to leave.
"This is clearly not fair, and not a sensible way to support jobs in Britain. So we intend to introduce a tax regime based on the place of consumption, where the customer is based, not the company."
The Treasury is expected to begin a consultation period shortly, which will lead to the rate of duty being announced in either the autumn financial statement or next year's Budget.
Osborne has also set the new duty that will apply to machines played in betting shops at 20 per cent of net takings, higher than betting industry studies had suggested would match the government's pledge for a revenue neutral position.
The rate for machines games duty, which replaces both amusement machine licence duty and the VAT previously paid by betting-shop operators, was set out in the Budget on Wednesday and came into effect when a series of motions was passed inthe House of Commons.
Osborne told the House: "The VAT treatment of gaming machines is being repeatedly challenged by operators in the courts. So I will introduce a new machine games duty, with a standard rate of 20 per cent and a lower rate for low stakes and prize machines of five per cent of net takings."
Osborne also announced that from next month the government would introduce double taxation relief for remote gambling.
He said: "These changes will create a more level playing field, and protect jobs here."
