Bingo wins £10m

Bingo companies are set to reap a further £10m in tax cuts, the Treasury has announced

During the Budget, Chancellor Gordon Brown slashed £25m off taxes and now an amendment to the Finance Bill has reduced the bingo industry's tax burden by a further £10m.

Industry estimates suggest around £125m in prizes could result with the tax cuts helping bingo to compete with the rival National Lottery.

The amendment alters the way gross profits tax (GPT) is calculated.

Under the revised system the tax applies only after VAT has been deducted.

Previously no allowance had been made for VAT with GPT payable on all of a company's gross profits.

Economic Secretary to the Treasury, John Healey, said: "Bingo is a popular pastime, and one which spans the generations.

"We want to ensure that it is fairly and proportionately taxed. With this amendment, we have further simplified and reduced the taxation facing the bingo industry - with a total tax break of £35m.

"We believe this provides a good basis for the industry to increase their prizes and attract new players into Britain's bingo clubs."