International edition
September 19, 2020

MGD will be a tax on the income from the playing of prize games on machines

UK government aims to introduce reforms in taxation of gaming machines

(UK).- Last 9 December the British Government confirmed its intention to proceed with reforms to the taxation of gaming machines. It intends to introduce legislation in the Finance Bill 2011 for a gross profits tax under the name “Machine Games Duty” (MGD).

M

GD will replace both Amusement Machine License Duty (AMLD) where this is chargeable and VAT on net takings. MGD will be a tax on the income from the playing of prize games on machines.
 
A GPT will improve the future predictability and sustainability of the tax regime by making it more resilient to technological progress, regulatory changes and to inflation. The Government believes that exempting gaming machines from VAT will also increase the stability of the tax regime as gaming machines will then have the same VAT treatment as other gambling activities. A GPT also supports the Government’s objective of a fairer tax system by ensuring the taxation of gaming machines is more closely linked to machine profits.
 
It is planned that the draft legislation will be published for a short consultation period in January 2011. There will be a period of at least one year from the date on which the Finance Bill 2011 receives Royal Assent before the new tax is implemented. <br />
 
A consultation on the taxation of gaming machines  was launched by the previous Government, and closed on 23 October 2009. The consultation received 42 written responses from gambling firms, industry representative groups and other bodies. <br />
 
The Government is very grateful for respondents’ contributions to the consultation process and has published a summary of responses. This includes the Government’s response to stakeholders’ comments, proposed next steps and an outline of MGD. Officials will continue to engage with stakeholders on the design of the new duty.

What is your opinion about this article?
  • I like it
    %
    0 votos
  • I don't like it
    %
    0 votos
  • I have not thought about it
    %
    0 votos
Leave your comment
Newsletter Subscription
Subscribe to receive the latest news and updates
Enter a valid email
Complete the captcha
Thank you for registering to our newsletter.
Follow us on Facebook