UK Budget 2011 – Gambling Updates
The Budget delivered on 23 March 2011 contained few major updates for the UK gambling industry that were not already anticpated, except for further details on the timescale for implementation of the new Machine Games Duty.
General Betting Duty
The Treasury has confirmed that there is no change in the rate of General Betting Duty, which remains at 15%.
Gaming duty bands will increase in line with the RPI for accounting periods starting on or after 1 April 2011.
Amusement Machine Licensing Duty will be increased by 5.2% in line with the RPI forecast for September 2011 (which is the methodology used by HMRC); this increase will take effect from 1600 on 25th March 2011.
The Government reaffirmed its intention to reform the taxation of gaming machines and introduce Machine Games Duty in place of the current AMLD+VAT regime. The Government will consult on the design of the new tax in May 2011. MGD will be introduced in the Finance Bill 2012 and will be implemented in early 2013.
Having reviewed the taxation of the National Lottery the Government has concluded that no change will be made. Lottery duty is charged at 12% of gross stakes.