Higher Rate Machine Games Duty Is Drawing Closer
As outlined in the 2014 budget, there is a higher rate Machine Games Duty (MGD) due from the 1st March 2015. This new higher rate will apply to gaming machines where the charge payable for playing can exceed £5, and is expected to have the greatest impact on bookmakers and casinos.
The measure is said to increase the fairness of the current tax system, by making the more profitable high street gaming machines pay a higher rate of MGD.
There are currently two rates of MGD:
- a reduced rate of 5% which applies to machines where you pay no more than 20p, but with a maximum prize pot of no more than £10; and
- the standard rate of 20% which applies to any other machines.
The Treasury says that the higher rate will affect around 400 businesses which provide gaming machines where the charge for playing can exceed £5. Although they also admitted that there is likely to be negligible one-off costs as people become familiar with the new tax rate, and there will be an added administrative burden for some businesses as they will need to collect and report their data in a more fragmented way.
For more information on Machine Games Duty, contact Green & Co.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.
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