Government publish draft for replacement for levy scheme
The new levy legislation was revealed as part of the budget
draft for levy legislation By Bill Barber 12:50pM 8 MAR 2017
THE government has published The Horserace Betting Levy Regulations 2017, the draft legislation which will lead to the replacement of the levy system from April.
Replacement of the levy does not require primary legislation and is being done through a statutory instrument, although that must get the consent of both houses of parliament.
The new system will extend the levy to remote betting operators based offshore who have so far been outside the levy net. The sport expects the new system to bring in an extra £30 million to £40 million per year.
The instrument confirms earlier guidance from government that the rate for the new system will be ten per cent, applied to gross profits on British horseracing betting above £500,000 per year.
Follow Us on TwitterFollow @RacingValueUK
The explanatory memorandum published alongside the regulations said: "The government considered the betting industry's commercial payments to the racing industry, including media rights, in arriving at the rate."
The new system must gain state aid approval from Europe, with the government having notified the European Commission of its plans on January 13.
While the plan remains for the new regulations to start on April 1, they will not come into force until that approval is obtained.
Should that come after April 1, the 56th levy scheme will run from the start of April until the new system is in place.
The regulations also make provision for the rate to be reviewed after seven years, although that does "not prevent the minister reviewing the rate if necessary before seven years".
While the Levy Board is set to continue to collect and distribute funds from the new system this year, the Gambling Commission will take over its collection duties in 2018 with a new Racing Authority responsible for spending decisions.
Those changes will be enacted by way of a 'legislative reform order' later this year.
Leave us a comment!
Share this story:
Subscribe to our Newsletter today to receive Free Horse Racing Tips.
Simply fill out the form below and wait for the Free Tips to land in your inbox.