Treasury Tax Could Devastate UK Industry

British racing has been urged to mount a united defence against proposed tax reforms that could deliver a devastating financial blow to the sport. According to racingpost.com, the British Horseracing Authority (BHA) is warning that Treasury plans to merge online gambling duties into a single rate could cost racing at least £66 million a year in lost income. It is encouraging all involved in the sport – from participants to punters – to contact their MPs and demand the government abandon the so-called “racing tax”. The Treasury is consulting on changes that would dissolve the current three-band structure of online gambling taxes into a single Remote Betting and Gaming Duty. At present, betting on racing and sport is taxed at 15 per cent, but the new framework could see it rise to match the 21 per cent duty imposed on games of chance like online slots and casinos. According to BHA-commissioned analysis, even a modest rise could severely undermine the sport’s revenues through reductions in the levy, media rights and sponsorship, as bookmakers look to offset the extra tax by slashing bonuses, advertising spend, and value offered to bettors. The BHA claimed racing could lose £97m if taxed at 25 per cent, £126m at 30 per cent – the rate floated by the Institute of Public Policy Research – and a staggering £160m if aligned with the 40 per cent rate applied to online casino games. “The government’s consultation on harmonising online betting duties, if followed through, poses one of the gravest risks to racing the sport has ever seen,” said acting BHA chief executive Brant Dunshea. “It will punch a huge hole in racing’s finances, risk thousands of jobs across Britain and threaten the future of the country’s second most-popular sport and a cherished national institution.”The BHA is submitting a formal response to the consultation, which closes July 21, and has welcomed comments from Treasury minister James Murray, who said officials would work with the racing sector to identify unintended consequences and explore mitigations. However, the alarm bells are already ringing across the industry. A cross-party parliamentary report last month described the combined threat of proposed tax reform, affordability checks, and the government’s failure to reform the levy as a “triple whammy” threatening British racing’s long-term future. “From now until the budget we will be hammering home a very simple message to MPs, peers and the government on behalf of millions of racing fans,” Dunshea said. “It’s time for the government to back British racing and axe the racing tax.”