HMRC revises UK casino tax bands

HMRC has updated casino tax bands in line with inflation.
HMRC has updated casino tax bands in line with inflation.

HMRC has updated UK casino tax bands in line with inflation. The new bands apply from April 2022.

UK.- HMRC has accepted a policy proposal to update the tax bands that apply to land-based casinos’ gross gaming yield (GGY). The update will apply from April 1 2022 and aims to ensure casino operators’ tax obligations do not rise in real terms as a result of inflation.

The casino tax bands, which were first implemented in 1997, apply tax rates in stages running from 15 to 50 per cent based on casino GGY. The current bands contemplate GGY from £2.5m to £13.8m, but this will be updated to apply a rate of 15 per cent for the first £2.6m and the top rate of 50 per cent on GGY over £14.6m.

The revision will be introduced via the 2021/2022 Finance Bill. HMRC described the update as routine and said the revised bands would have no effect on tax estimates and no significant economic impact. Nor should they have any impact on payouts.

The proposal states: “The measure will ensure that the gaming duty accounted for by the casino operators is maintained at real levels. If the bandings were not increased in line with inflation, then over time more GGY would be subject to higher rates.” 

New UK casino tax bands from April 2022

  • The first £2,548.500 of GGY: 15 per cent
  • The next £1,757,000 of GGY: 20 per cent
  • The subsequent £3,077,000 of GGY: 30 per cent
  • The subsequent £6,494,500 of GGY 40 per cent
  • The remainder of GGY: 50 per cent

Meanwhile, the All-Party Parliamentary Betting & Gaming Group (APBGG) has extended its inquiry into the Gambling Commission‘s competency as a regulator. It said it had received significant evidence from the gambling industry of serious failings at the Gambling Commission and would now extend its inquiry to December 1.

See also: Britain’s Gambling Commission reports drop in problem gambling

In this article:
gambling Land-based casinos