MP’s betting tax bill clears first hurdle
NEWMARKET MP Matthew Hancock has secured Parliament’s support to bring in a bill to close a loophole that allows bookmakers to operate their online businesses offshore.
Mr Hancock said he was pushing to close the loophole to guarantee a sustainable future for horse racing, which had suffered a sharp decline in funding from the Levy, partly because bookmakers had moved offshore in recent years.
“I have always maintained that there is widespread support for this change. The fact that my bill has passed unanimously demonstrates this support is cross-party and widespread,” said Mr Hancock.
“I hope that this positive result will lead to the Government implementing the proposed ‘point of consumption’ licensing regulation as soon as possible.”
The bill, which will contain provision for all operators who take bets from UK customers to pay levy, will have its second reading on March 30.
Mr Hancock reiterated the arguments made in two recent Commons debates about the state of British racing’s finances.
He said the levy income had fallen from £100 million to under £60 million in the last three years as 18 of the 20 biggest online betting operators had taken their business offshore and away from UK jurisdiction.
They currently avoided paying £300 million of UK taxes and tens of millions in contributions to horse racing.
He went on to say there was “good merit” in the view that a 15 per cent rate of tax on gross profits from online bets, which applies to UK-based operators, was too high.
Email to a friend
Print this page
Looking for...
Featured advertisers
Jobs
Search for a job
Motors
Search for a car
Property
Search for a house
Weather for Newmarket
Friday 25 May 2012
Today
Sunny
Temperature: 12 C to 21 C
Wind Speed: 22 mph
Wind direction: East
Tomorrow
Sunny
Temperature: 12 C to 21 C
Wind Speed: 20 mph
Wind direction: East
Your view
Please sign in to be able to comment on this story.