Taxes on casino winnings

Taxes are something we all have to cope with and something that we like to limit paying but the great thing about winning money in the UK is that there are no taxes on casino winnings. The same goes for lottery wins or money won from any other game. However there are taxes that the casinos have to pay.
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Gambling tax reform

General Betting Duty (GBD), Pool Betting Duty (PBD) and Remote Gaming Duty (RGD) were changed from 1 December 2014 in order to benefit bookies. The new tax laws concern firm who operate from outside of the UK to UK customers, like websites hosted offshore, as well as those based in the UK, such as high street betting shops. The government are making close to £300 million per year in extra revenue from this new tax and bookies in the UK are seeing benefits from this change as additional revenue flows in their direction. If you’re in the industry, you might want to check out gov.uk/gambling-tax-reform-new-rules-from-1-december-2014 for more details on the reform.

Old tax rules for gamblers

Before 2001, gamblers had to pay a 9% tax whenever they placed a bet. This could be paid on the stake or on the winnings. That decision was left in the hands of the player, which added a gambling element to the tax itself. Thankfully this 9% levy was taken away by Gordon Brown after the March 2001 budget in an effort to strengthen the industry. Since then there haven’t been any taxes charged on winnings or stake money. The abolition of this tax was meant to stop bookies from moving offshore and in the main it’s done that.

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