This snapshot, taken on 07/04/2010, shows web content selected for preservation by The National Archives. External links, forms and search boxes may not work in archived websites.
Budget
CE9
09 March 1999
"A £30 million a year boost for the pools industry will help them
compete more effectively," said Chancellor Gordon Brown today, as he
announced a 9 percentage point cut in pools betting duty to 17.5 per
cent.
The cut, to take effect from 28 March this year, will also ensure
continued help for the Foundation for Sport and the Arts and the
Football Trust, who have been guaranteed continued funding by the
pools companies until at least March 2002.
The Chancellor also announced that gaming duty bands would be indexed
from 1 April 1999.
DETAILS
The following table shows the old and new rates for gaming duty.
Present Bands Revised Bands
The first #450,000 of The first #462,500 of
gross gaming gross gaming
yield ...........2.5% yield ...........2.5%
The next #1,000,000 of The next #1,027,500 of
gross gaming gross gaming
yield ...........12.5% yield ...........12.5%
The next #1,000,000 of The next #1,027,500 of
gross gaming gross gaming
yield ...........20% yield ...........20%
The next #1,750,000 of The next #1,798,500 of
gross gaming gross gaming
yield ...........30% yield ...........30%
The remainder .....40% The remainder .....40%
1. The pools companies have seen their turnover decline following the
introduction of the National Lottery. Two previous duty reductions,
each of 5 percentage points, were given in May and December 1995 to
assist the industry, and this further cut is intended to help the
pools companies invest in their future, while securing continuing
funding for the Football Trust and the Foundation for Sport and the
Arts.
2. The revenue cost of this measure is #30 million.
3. Funding was provided for the Football Trust (FT) in 1990 after the
Taylor Report on the Hillsborough disaster. The FT does valuable
work in helping football clubs meet the safety recommendations of the
Taylor Report. It is partly funded through the proceeds of a 3
percentage point reduction in pool betting duty.
4. The Foundation for Sport and the Arts was established in 1991,
mainly at the behest of the pools companies. It does useful work
funding small arts and sports projects. The FSA's sole source of
funds is contributions from the pools companies equivalent to 3 per
cent of turnover, but funded through a reduction in pool betting
duty, totalling almost #10 million per annum.
5. The reduced rate of pool betting duty will apply to stakes paid on
or after 28 March 1999.
6. Details for business are published in Budget Notice 23/99, which
is available from Customs & Excise Advice Centres and from the
Customs & Excise Internet site.
7. Gaming duty is levied on gross gaming yield (the difference
between stakes received and winnings paid out), at the rates set out
in the table above.
8. Since this measure only adjusts the duty bands in line with
inflation, without changing duty rates, there is neither cost nor
gain to the revenue.
9. Details for business are published in Budget Notice 75/99.
Press enquiries only to HM Customs and Excise, Public Relations
Office, New King's Beam House, 22 Upper Ground, London SE1 9PJ.
Telephone: 0171 865 5471/5472.
Others should contact their local Excise & Inland Customs Business
Advice Centre, listed under Customs & Excise in the telephone book.
Customs and Excise internet address:
http:/www.hmce.gov.uk
This news release can also be found at:
http:/www.hm-treasury.gov.uk
Other Treasury material can also be found at this address
# = pounds sterling
Back to top
