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Gambling duties: transitional rules for DTR withdrawal

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Originally published on 1 November 2012, Excise Notice 456 (Double Taxation Relief (DTR) for gambling duties) sets out the DTR provisions that apply to the gambling duties: general betting duty (GBD), pool betting duty (PBD) and remote gaming duty (RGD).

However, reforms in FA 2014 part 3 coming into effect on 1 December 2014, change the point of liability in the application of GBD, PBD and RGD from a place of supply to a place of consumption basis and impose a 15% rate. This essentially means all such gambling will be liable to duty, regardless of the whereabouts of the provider, and non-UK providers of such services will become subject to UK gambling taxes. The result is that any GBD, PBD and RGD which is due on or after 1 December 2014 will no longer be eligible for DTR.

Transitional rules have now been put in place detailing how any final DTR claims need to be made. In essence, claims in relation to any GBD, PBD and RGD paid in relation to accounting periods ending on or before 30 November 2014 will need to be submitted by 30 November 2015 along with a final DTR reconciliation (covering the period ending 30 November 2014).

According to Pinsent Masons, the Gibraltar Betting and Gaming Association (GBGA) continues to explore legal routes for challenging the proposed amendments with the latest attempt being the GBGA seeking judicial review in the High Court on the basis that the change in law restricts the fundamental European principal of the free movement of services.