Capital Gains Tax Encourages Investment Gambling
Posted: 11/06/2010 Filed under: Offshore Solutions, Remote Gambling License, UK Company Set Up | Tags: business concerns, corporation tax, gambling, gambling laws, gambling sites Leave a comment »We have talked before about the fact that the British love to gamble. And we have certainly covered the proposed capital gains tax rise planned for the UK. A recent article in the Telegraph talked about how one will cause people to be rewarded for the other.
The article was specifically pointing out that if the huge rise that is expected in capital gains tax does eventuate then people who have had a safe and steady attitude to investment and saving will be heavily penalized and those that gambled on the things far less trustworthy will nearly avoid the taxation all together.
It seems three million shareholders – a lot of them blue collar workers who have invested their earnings in their own companies — are likely to be hit hard by the increase in capital gains tax.
While those that invested in a kind of stock market gamble known as a spread bet, this is where you take a punt on which stocks will got up and which will drop, will miss out on being taxed at all. You don’t even have to own the shares.
Many experts are warning that this kind of reward for risk is likely to foster a gambling mentality and put people off the kind of patient long term investment that will see Britain recover its buoyant economy more quickly. It is also feared that the shift to avoid the huge taxation hike will result in the money going into the pockets of bookies rather than the coffers of the government.
Call me a cynic but I think that this type of talk is more likely to result in a change to laws to allow the taxing of spread betting than the stoppage of the proposed capital gains tax rise.
Gambling Pair Take a Punt On Settlement
Posted: 11/05/2010 Filed under: Investment, Remote Gambling License, Small Business, Uncategorized | Tags: gambling, gambling laws, gambling sites, uk investments Leave a comment »A very interesting UK gambling story this week. Or at least a story that involves UK gambling companies.
In The Times this week I noticed a story on two UK gambling firms that have decided to take their chances in court. Richard Segal, the former chief executive of PartyGaming, and Stephen Hill, former chief executive of Betfair, have chosen to fight one of Britain’s oldest private equity companies over monies they believe are owed to them in unpaid bonuses.
The pair were bought in by 3i to run a fund that was later closed and the two men forced to forego certain performance bonuses that they had been promised. It seems that the crux of the two business mens argument is that they were both very successful before they got involved with 3i and that it is therefore reasonable to say that the fault for the poor performance of the fund lay elsewhere.
Each man claims to be owed around 3 million pounds by 3i. A quite hefty chunk of change indeed.
It will be interesting to see if their gamble pays off.
In the meantime the gambling business, especially offshore companies continue to be a good bet in the UK. If you want some advice on how to set one up we would be happy to help.
The Big Debate Gamble; What Are the Odds?
Posted: 13/04/2010 Filed under: Remote Gambling License, Small Business, UK Company Set Up | Tags: business concerns, gambling, gambling laws, gambling sites, uk companies, uk investments 1 Comment »As i have mentioned before I am involved in helping people obtain remote gambling licenses and to run UK companies that specialise in gambling. It is a growing trade in the UK and it is no wonder as it seems we have a fascination with it. Earlier in the month I published a blog that outlined the types of bets available for the various aspects of the budget. I thought I would do the same for the big party debate, but get in a little earlier so you have time to mull over your bets.
As with the budget the bookmakers are hard at it trying to find interesting and lively ways to part us from our money. Gone are the days where you were likely to be only able to bet on the result of an event. In this day and age that would never satisfy the average punter. On the serious side we have bets such as who will be the first to break the rules of the debate and which of the three with achieve the highest TV audience. The last one though does appear to depend on whoever goes first, apparently after that a lot of us lose motivation. The odds are probably not worth publishing this far out from the debate but they should be interesting.
On the more frivolous side you can also bet on who will be the first to perspire, the most fascinating thing about this will be how they plan to measure it.
If you are looking to cash in on the growth in the UK gambling market feel free to get in touch and discuss it. We have been setting people up in this business for years.
The Big Budget Gamble
Posted: 24/03/2010 Filed under: Remote Gambling License, UK Taxation | Tags: bingo online, gambling, gambling laws, gambling sites Leave a comment »As someone who deals with gambling licenses and someone who is involved quite heavily in dealing with companies and their money I was trawling through the internet looking for information on the budget, which is bound to affect most of my clients, and gambling laws in case of any changes. I was delighted to find an article which managed to fit in both.
An article in the Guardian was very detailed on the bookies and their budget odds and it just goes to show you you can bet on just about anything in the UK these days. My clients who wish to set themselves up in a UK gambling business could do worse than to look at the breadth of things you could bet on on budget day.
On the more serious side you could bet on the actual substance of the budget ten ways from Sunday with your options including 1/5 that alcohol duty will go up,12/1 that it will be reduced ( which I think are fairly short odds as if it goes down I will gladly eat my hat without seasoning). The odds are 1/5 that the final budget deficit for 2009-2010 will come in below £178bn. On the less serious side you can actually bet on how many times Darling will say the word deficit!
My personal favorite though is the fact that you can bet on Alistair Darling’s tie. The colour and the length! This may not be a bad choice actually as last year, when he wore a bluely gray tie the bookies paid out on both.
If you are worried about how aspects of the budget will affect you and your company feel free to give us a ring and discuss it with us. we are experts in UK company taxation.
UK Gambling Laws Still Unpopular
Posted: 17/02/2010 Filed under: Remote Gambling License | Tags: gambling, gambling laws, gambling sites, remote gambling regulations, remote gambling. gambling Leave a comment »It is the opinion of many and specifically a story on the gambling site eGaming Review last week, that the government’s desperate attempts to fix up HYPERLINK “http://www.stmworldwide.com/” UK gambling laws is still a failure.
The announcement last week that “all operators who want to target British consumers must be licensed by the commission” is seen by the gambling sector as being quite admirable but also, ultimately, probably futile. This is the latest attempt by the government to plug a gaping huge hole in UK gambling laws that allows remote gaming and betting websites to advertise in the UK wether they hold a British license or not.
It is a situation made worse by the fact that the huge taxation that the UK government has thrown at the gambling sector has resulted in a lot of major UK players moving their internet concerns offshore. This has become somewhat of a battle royal, with popular opinion having it that the government is losing.
The difficulty lies not in the wording or intention of this new law, that is all very clear. The problem is the enforcing of it. Many a government including the USA and lots of European countries have already been down this road and failed.
I wish them all the best with but I am not hopeful. Just a thought; perhaps they could consider a tax reform to lure the offshore activities back to our fair shores.
If you are interested in a HYPERLINK “http://www.stmworldwide.com/services-uk-ltd-company.html” remote gambling license or even setting up your own company in this sector then we can help at St Matthew’s eAccounting. We deal with with it every day and are experts at helping you get things running smoothly.
Online Gambling To Get Regulation Overhaul
Posted: 20/01/2010 Filed under: Remote Gambling License | Tags: gambling, gambling sites, online gambling Leave a comment »
UK tax policy regarding online gambling is a source of frustration for many companies including big names such as William Hill and Ladbrokes. In fact it is widely acknowledged that the present online tax regime in the United Kingdom is disastrous. Much relief then when the sports minister Gerry Sutcliffe announced last week that there would be a major overhaul of the regulations.
The overhaul is apparently to focus strongly on tightening up the regulation of offshore operators. The idea is to issue individual licenses to to online firms. This is meant to prevent firms from relocating there business offshore in an effort to avoid Gordon Brown’s last move as chancellor which was to to set a tax rate of for internet gambling organizations at 15% of gross profit. The result of this is that no poker or casino sites conduct their UK business through a Gambling Commission license or pay tax here.
The new licensing scheme is designed to bring a lot of this business on shore where it will be subject to the high tax rate as set down by Gordon Brown.
A Treasury spokesperson said: “The focus of the Department for Culture, Media and Sport (DCMS) review was on the regulation – not taxation – of remote gambling … The Treasury will continue to work with DCMS to ensure that any implications for tax policy, arising from the proposals, are properly considered.”
I get the distinct feeling that this battle is not yet complete. The UK has one of the biggest markets for online gambling in the world. I cannot help but think that there is enough pie there for everyone to get their slice without being unfair about it. The government should be careful of driving out a industry that has so much potential for bring cash into the economy. A fair tax rate applied to many is probably going to work better than a grossly unfair one that shrinks the very industry it is taxing.
