UK government to miss Racing Levy implementation date
New levy will not go live as planned on 1 April after the government yet to receive EU state aid approval
The UK’s new Racing Levy will miss its planned 1 April implementation date after the government failed to receive EU state aid approval in time.
Lord Ashton of Hyde made the announcement during a debate in the House of Lords last night, but said he still expected to receive approval from the European Commission “shortly”.
The news means that the Horserace Betting Levy Board must now go ahead with arrangements for the 56th levy scheme to be implemented on 1 April until state aid approval is received.
“We have today been informed by the European Commission that state aid approval will not be received before 1 April,” Lord Ashton of Hyde said.
“Therefore, the reformed levy will not be in place on this date. The statutory instrument provides for the reforms to come into force once state aid clearance has been received.
“Until that time, the 56th levy scheme, as determined by the Secretary of State, will take effect from 1 April, ensuring a continued flow of funding to the racing industry.”
The new scheme is set to replace the retail-only Horserace Betting Levy and will for the first time be applied to offshore betting companies, in an effort to boost funding for UK racing.
Both onshore and offshore operators will be required to pay 10% of gross gambling yield (total stakes minus winnings paid out) derived from the sport, above the first £500,000 of profits.
The levy received cross-party approval during a debate by a House of Commons committee on Monday, which was welcomed by British Horseracing Authority (BHA).
“We appreciate enormously the support that Parliamentarians across the political spectrum have provided to our unique and multi-billion pound industry,” Will Lambe, BHA director of corporate affairs, said.
“We now await the anticipated European Commission clearance, as the final formal step in the process and which will secure the new Levy and have a transformative effect on our sport, in particular its grassroots and our tens of thousands of employees.”