Gambling Tax In The UK
In many countries in the world, gamblers must be aware of tax laws that mean they must give up some of their winnings made at gambling sites, whether these be land-based or online.
However, for players in the UK, this has not been an issue for some time, something that is excellent news for gamblers.
This guide is here to introduce you to gambling tax laws in the UK, and how they will (or indeed, will not) affect you.
Gambling Tax in the UK
Players in the UK used to have to pay a duty on their gambling winnings, but that cam to an end back in 2001, when Gordon Brown, the Chancellor of the Exchequer at the time, did away with this tax.
This resulted in there being no tax at all on players in the UK when it comes to winnings from gambling sites, which creates a pleasing playing environment.
The best news for players is that this never changes, whether you play lotteries, at casinos, or sports betting is your thing, whether you play online or at land-based sites, and whether you are a casual spending hobbyist, or a professional gamblers who makes most, if not all of your annual income from gambling, you will never be taxed on anything that you earn.
Does it Cost the Government?
It may seem illogical for a Government to remove taxes from such a highly profitable resource, but it isn’t like the UK is hard up when it comes to money gained from gambling taxes.
While players are not taxed on their winnings, various tax rises and additional fees have been put into effect over recent years when it comes to gambling operators, meaning that the UK Government took just shy of £3 billion in taxes in the 2016-17 tax year, a number which is expected to grow year-on-year.
Tax for UK Facing Gambling Sites
The Gambling Act 2005 saw the creation of the UK Gambling Commission (UKGC) which regulates all operators in the UK, who are also eligible to pay tax on all profits as a result of the Act.
However, the fallout of this saw many gambling companies move offshore, to places where tax laws are friendlier towards gambling companies.
This was then counteracted by UK law which now states that any gambling operator which offers real-money gambling in the UK is required to pay the same 15% tax that is charged to UK based operators.
This has resulted in the Government making a great deal of money from the tax put on gambling operators that are licensed in the UK (any that aren’t are not legally allowed to offer their services in the country) meaning that there is no loss to be found from not taxing gamblers themselves on the winnings they gain from these sites.
Th gambling industry is one of the most profitable in the world, and one of the most taxed, but in the UK, players do not have to worry about any of that! #