Reformed British racing levy comes into force
Offshore betting companies now subject to a 10% tax on gross profits from British racing customers for the first time
Operators taking bets on British horseracing will from today be subject to a 10% tax on profits from British customers after the reformed Levy system was finally rubber-stamped by the UK government.
The new system will see all operators, on or off-course or online or offshore, pay 10% of gross profits above a £500,000 threshold back into the British racing industry for the first time, rather than solely UK-based bookmakers.
The Levy, which recently received approval from the EU Commission, aims to secure the long-term funding of the sport and could lead to an increased pot of funds of around £90m a year.
According to the British Horseracing Authority (BHA), the growth of online betting activity, much of which is located offshore, had led to the Levy yield decline from more than £100m annually to less than £50m.
“Today is a very important day for British racing as the new Levy will make a significant contribution to securing the long term health and growth of our sport,” Nick Rust, CEO of the BHA, said.
He added: “The Levy is the clearest sign yet of the success which British racing can achieve when we work together.
“British racing is keen to move forward with the betting industry to ensure that the sport enhances its position as a high-quality, attractive betting product.”
The Authorised Betting Partners (ABP) scheme will cease operation from today now all betting operators will be paying the Levy on a statutory basis.
The Levy Board will continue to carry out its functions of collecting and distributing funds until 2018, when the Gambling Commission will assume collection responsibilities, and a new Racing Authority will decide on spending.