Brown set to axe betting tax

Bookies could be boosted by Brown's tax reform

The government is expected to abolish betting tax in a bid to help high street bookmakers compete with offshore and internet-based rivals, it has been reported.

The reform, signalled in the small print of Chancellor Gordon Brown's pre-Budget report on Wednesday, is likely to be confirmed in the next Budget.

It is intended to help the domestic betting industry fight off the threat posed by offshore competitors who offer tax-free bets, and internet bookies who provide low-tax betting.

Any impact of the reform on the Treasury is expected to be partially offset by the introduction of a levy on bookies' profits.

High street bookies currently have to charge 9p in the pound on bets, although on-course betting is already tax-free.

Modernising the system

The pre-Budget document said: "The government's objective... has been to assess the scope for a modernisation of General Betting Duty that would deliver a business environment in which the British betting industry can compete in both the domestic and international markets.

"The government believes there is scope for a modernising reform of General Betting Duty to deliver this objective."

The move was welcomed by the betting industry.

Tom Kelly, of the Betting Office Licensees Association, told The Sun newspaper: "We welcome the government's recognition of the problem of offshore betting, and we are pleased it has taken on board the need to give punters a better deal."