Pursuant to the Finance Act 2014, as amended by the Finance Act 2019, online licence holders must pay a tax of 21% of their gross gaming yield in relation to accounting periods beginning on or after 1 April 2019, generated from UK customers, even if the operator is located outside the UK. He is scrapping the system in which the Government collects betting duty of 6.75% from bookmakers, which is passed on to punters in a 9% tax. Bookmakers can absorb all the costs of the new tax. New 21% Point Of Consumption Tax For Online Gambling In The UK To Come In 2019 Published on 31st October 2018 Following the recent £2 stake limit on fixed odds betting terminals it was expected that the UK government would begin to introduce new levys and limits on online gambling.

onlinecasinoselite.org › Blog › UK gambling Taxation System Explained

CASINO GAME RULES

It’s difficult to do anything in life without having to pay the government in the form of tax. So surely the gambling industry is no exception?

If you expect you need to declare your gambling winnings to the government, you might be in for a surprise.

The gambling tax explained

The UK gambling tax system is very advantageous to players. Not only does it work out in your favour, but it is also incredibly easy to understand.

Whenever you gamble in the UK, you are not required to pay any tax whatsoever. You don’t have to pay tax on your winnings and there’s also no need to pay any tax on your initial stake either.

This, of course, means you don’t need to report your winnings to the taxman. If you win £5,000 at an online casino, you get to keep that amount in full! This is a great improvement on the policies of other countries where you don’t actually get to keep all of your winnings.

Who gets taxed?

So how is this all possible? The gambling industry is worth a lot of money, so why is the government not taxing it?

Instead of taxing the players, the UK government actually taxes the operators. But this wasn’t always the case. In the past, you used to pay a tax to the government either as a tax on your stake or as a tax on your winnings. What changed then?

In 2002, the UK government was concerned the British gambling industry wasn’t going to be able to compete with the rise of online gambling sites in UK. This led the government to .

As we can see today, the decision was a successful one. The UK gambling industry is still alive and well to this day.

What about professional gamblers?

Professional gamblers might actually have one of the only professions that are not actually taxed in the UK. If you are lucky enough to gamble for a living, you don’t need to pay the tax man a penny on your gambling winnings.

The reasoning for this is fairly simple. If the government was allowed to tax you for doing a certain activity such as gambling, under the current tax system, you would have the ability to claim money back from the government for your losses.

Online Gambling Tax Uk Online

The UK government does not want to open the floodgates for everyone who loses money gambling to claim money back. Not only does this mean professional gamblers won’t ever be taxed, but it also means the gambling tax is unlikely to return any time soon.

How did operators react?

It’s no surprise that casino operators were not too thrilled about this new taxation system. Operators looked for a way to pay as little tax as possible.

Some of them starting running their businesses out of “tax haven” countries. These countries require casino companies to only pay a very small amount of tax compared to the UK. This is a big reason you will see certain countries such as Malta coming up over and over again in the gambling industry; they offer very favourable tax rates to casino operators.

Online Gambling Tax Uk 2019

Unfortunately for the operators, the UK government took a stand against this practice. They introduced the Point of Consumption Tax (POCT).

According to this tax, a casino company must pay the tax according to the country their players are living in. This means that if a UK player accesses a casino site from the UK, the operator will need to pay the UK tax on their player’s activities.

Enjoy tax-free gambling

The tax system for players in the UK is elegantly simple. You don’t pay any tax whatsoever on any kind of gambling transaction. It’s the operators who have to worry about navigating the UK tax system, not the players.

Online Gambling Tax Uk Gov

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Gambling Industry in the UK with the Explanation of the Tax to Government

Online gambling industry is one of the fast-rising sectors in the world with regular progress and new innovations. Even, the technology has developed the industry in an amazing way that helps the developers to develop creative gaming enthusiasts.
But whatever game you want to play, it is difficult to do anything in your life without paying to the government in the form of tax. The gambling industry is also not exceptional in such a case. If you win in any casino gambling game, you have to provide information about your gambling winnings to the government first. But here are some tax explanations of the Gambling industry in the UK that would definitely make you surprised.

Online Gaming Tax Uk

UK Gambling Tax System:
The tax system for UK gambling is very advantageous for the players. Not only does it would work in your favour but it is also very easy to understand and follow their rules and regulations.
Whenever you play casino games in the UK, you don’t need to pay any tax to the government, whatever it is. You don’t have to pay tax on your winning money and not even you have to pay tax on your initial stake. So, it simply means that you don’t have to inform your winnings to the taxman. So, for example, if you win Euro 4000 at an online casino, you can keep the entire amount with you. This is great differences in the policies of gambling winnings with other countries where you are not able to keep the whole amount of your winnings with you.

Who then Get Taxed in the UK for Gambling?
The gambling industry is worth a lot of money, thus, the UK government taxes the operators instead of the players. However, this was not happened in past. Previously, the player also used to pay tax to the government either in the form of tax on your stake or as a tax on your winnings.
In the year 2002, the UK government realized that the gambling industry of the UK would not be able to compete with the online gambling industry of the UK and other parts of the world. The government then decided to eliminate the tax from the players and keep the tax of the operator and we can see today that the decision was successful.

Gambling as a Profession in the UK:
So, becoming a gambling professional might be the only professions that is not actually taxed in the UK. If you are already gambling for a living or planning to take the gambling industry as your profession, then you are the lucky one as you don’t need to pay a single penny to the taxman on your gambling winnings. The reason for taking such decision by the government is very simple. According to the current tax system in the UK, if the government was allowed to tax you for doing any activity like gambling, then you would have the ability to claim your money back from the government for a