Isle of Man Online Gambling Tax Relief For New UK Tax

January 2, 2015 by

Isle of Man Online GamblingThe new online gambling tax structure in the United Kingdom has shaken up the industry in a major way. Thankfully for many companies located in a certain part of the world, there’s some Isle of Man online gambling tax relief on the way. They have decided that companies based there will be able to claim double duty on the money they pay in to the new 15 percent point of consumption tax that is a part of the UK’s new tax on online gambling. This will be a good way to provide a bit of relief from these changes.

About the Isle of Man Online Gambling Tax Relief

The way this tax relief works is more or less that operators won’t have to pay tax on the income used to pay the 15 percent point of consumption tax. This will amount to a bit of savings that will be more than welcome for many companies that have been trying to figure out how to cope with the changes that have been on top of them from the changes to UK online gambling tax law. They can really use all of the help that they can get because of this controversial new 15 percent tax.

Why the Point of Consumption Tax Misses the Mark

A lot of industry experts have been saying that the new UK point of consumption tax for online gambling is counter-productive because it forced a lot of companies out of their jurisdiction. This means less revenues from normal taxes paid from these operators, and that means that you start out in the red before you start collecting on this new 15 percent.

What’s more is that because of this tax, operators are forced to offer worse promotions and a bit less value which will inevitably lower revenues as fewer players enjoy the games. This also hurts the revenue gained from existing companies who have chosen to continue operating in the United Kingdom, so it’s unclear what the net effect will be for this new tax.

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