UK Treasury tells operators to prepare for bonus tax from August
New tax will be applied from the start of next month regardless of whether legislation passes
The UK tax on online gaming free plays will kick in on 1 August even if the legislation has not been passed by Parliament, the Treasury has said.
The levy, which extends the PoC tax to gaming bonuses and free plays, was originally introduced as part of the Finance Bill in March 2016, but was scrapped ahead of the election.
The government has since confirmed plans to reintroduce the clause “as soon as possible after the summer recess” which ends in September.
The tax on gaming free plays will kick in from 1 August. Credit: iStock
However, Remote Gambling Association CEO Clive Hawkswood told EGR the liability from the tax would kick in from 1 August regardless.
“If the Finance Bill is not passed until later in the year there is still a retrospective payment provision so companies are advised to start accounting for the tax on gaming freeplays, from the end of this month, even though the guidance is not yet finalised,” Hawkswood said.
Jackpotjoy CEO Andrew McIver confirmed to EGR that his company was also operating under that expectation, with the firm adjusting its budgets and City guidance accordingly.
The tax is expected to raise around £75m a year for the government, with McIver predicting a 3-4% hit on margin for Jackpotjoy.