UK Budget increases offshore gaming duty

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 Tuesday, October 30, 2018 - 11:46

As had been expected, UK chancellor Philip Hammond has increased duty on offshore gaming, it goes up from 15% to 21%, that is a 6% increase, affecting the gaming business in Gibraltar and elsewhere. 

What is known as remote gaming duty (RGD) it applies to gaming over the internet, telephone, by television, radio or other electronic communications.

In May 2018, following a consultation on proposals for changes to gaming machines and social responsibility measures around gambling, the UK government announced that the maximum stakes on Fixed Odds Betting Terminals were to be reduced. In order to cover any negative impact of this on the public finances, the change would be linked to an increase in RGD at the relevant Budget.

The new duty rate will apply for accounting periods that begin on or after 1 October 2019 and will be chargeable on profits from remote gaming from that date onward. Where this date falls part-way through an accounting period, the increased rate will be charged only on the profits that arise between 1 October and the end of that accounting period.

A UK statement says that the RGD rate is in section 155(3) of Finance Act 2014. Currently, RGD is chargeable at the rate of 15% of the gaming provider’s profits on remote gaming for an accounting period. RGD providers file returns on a quarterly basis.

Legislation will be introduced in Finance Bill 2018-19 to amend section 155(3) of Finance Act 2014. The rate will be amended to reflect the increase from 15% to 21%.

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