The winds of change are blowing through the UK horse racing industry, and it’s time to pay attention. First, there’s a brewing storm on the horizon with the Treasury consultation on remote gambling tax. The proposal aims to create a unified remote gambling duty by merging the General Betting Duty, Remote Gaming Duty, and Pool Betting Duty. Supporters might see it as a streamlined approach, but for us in the horse racing world, it could spell trouble.
Currently, the online betting realm falls under General Betting Duty at a rate of 15%, whereas online gaming bears a separate Remote Gaming Duty at 21%. The potential merging of these duties might lead to unintended consequences, especially for our beloved horserace betting. It risks placing horseracing on the same playing field as online games of chance, potentially dulling its allure for our bettors.
The British Horseracing Authority (BHA) rings the alarm about this proposal, stating that harmonizing these taxes could have significant financial repercussions. With racing’s financial veins already squeezed by delays in Levy reform and patchy affordability checks on bettors, the suggested tax uniformity threatens to add another financial hurdle—the proverbial ‘triple whammy’.
The racing fraternity knows too well that changes in cost structures influence behaviors. If tax harmonization proceeds, operators might trim costs to maintain margins, reducing promotions and offers that form part of the racing allure. Such maneuvers could result in a diminished customer experience and steer enthusiasts away.
The BHA will not stand idly by. They’re preparing a robust response for the consultation, beating the July 21 deadline, to make racing’s case clear. Meetings with Treasury officials are also on the cards to drive home the potential impact of these changes. The discussion will include representatives from the Department for Digital, Culture, Media and Sport (DCMS), as they remain a pivotal government ally for horseracing.
But it’s not all gloom. A refreshing breeze has blown through with changes to the Temporary Admissions (TA) procedure, benefiting the UK racing industry. TA allows for the importation of goods, including racehorses, into the UK temporarily, sans customs duty and import VAT. Thanks to the BHA and industry bodies’ lobbying efforts, the government is simplifying and improving TA procedures.
These changes will see the clarification of policies and guidance, ensuring a consistent 2-year limit for horses used in breeding. This simplifies the landscape for breeders, supporting the UK’s breeding preeminence. It also includes policy amendments allowing gelding of horses under TA, provided it wasn’t their initial purpose of import.
Moreover, updated guidance will make it easier to apply for extensions to the time limit when necessary. These procedural refinements are expected to take effect by summer, streamlining racehorse imports and reinforcing them as cost-efficient.
In essence, this signifies a significant victory for the industry, enhancing the operational landscape while clarifying that customs duty and import VAT won’t befall these animals. So, as we ride these waves of change, it’s clear that the spirit and resilience of the racing community remain unbridled.
