The United Kingdom is a great place for gamblers, it does not matter if you are a professional gambler or just in it for fun, it is home to all. Not only is gambling completely legal and fully regulated in the UK, but you will be able to keep all your wins. This is not only applicable in the UK, but other countries as well. Gambling winnings are tax-free for players in Scotland, Wales, Northern Ireland, and England.
So here are a few pointers concerning gambling winnings and tax in the UK. With that in mind, we’ve decided to focus on how to maximize your chances of winning by enlisting the best casino bonuses that keep you busy, happy and offers extra money to play your favourite games.
Are Gambling Winnings Taxable in the UK?
As stated earlier, gambling winnings are not currently taxed in the United Kingdom. Instead, casinos and other betting sites pay taxes on their profits.
In the United Kingdom, you won’t have to pay taxes on any of your winnings or stakes. It does not matter if you have won £100 or £1 million. This applies to all types of gambling—from bingo, to slots, to lotteries, and even horse racing.
If you are a resident in another country, other than the UK, you may be liable to pay tax on your winnings. Players in some countries such as the USA, France, and Macau have to deal with gambling taxes between 1% and 25%, while bettors in the United Kingdom have the privilege of keeping the entirety of their winnings. This applies to both online and offline gamblers in Britain, taxes will not be charged from their winnings.
How this Came to Be
Gambling winnings in the United Kingdom used to be taxable years ago, it all changed in 2001 when Gordon Brown, who was Chancellor of the Exchequer at the time, scrapped that tax. The UK government was effectively forced to enact several changes due to the sudden rise and perceived threat of offshore betting earlier this century, yet this move was just one of many important developments to follow through. The government also passed the Gambling Act in 2005, established the UK Gambling Commission, and started regulating online casinos.
From these developments, the bettors are not the only ones who benefit, did you know that the UK government rakes in a mighty revenue from gambling?
In the 2017-18 fiscal year alone, Her Majesty’s Revenue and Customs raked £2.9 billion in gaming-related duty. And the revenue is generated from lotteries, betting, and live as well as remote gaming. It is indeed an astronomical amount and a great deal of that revenue comes from the 15% tax levy gambling operators must pay. While players do not have to worry about paying taxes when they win or lose, the government rather tax betting shops, poker rooms, casinos, and other related establishments on their profits.
Why is Gambling not Taxed?
Gambling winnings are not taxed because it is considered more efficient to tax businesses that provide the ability to gamble than it is to tax people gambling regardless of whether they win or lose.
Likewise, it is important to note that; Even though players are not taxed for their winnings and do not pay any fees directly, in many ways they are built into the odds by betting shops. Nonetheless, it is nice that players can concentrate on playing their favorite games instead of dealing with complicated tax forms.