Being a casino player makes your day go round if you will discover that you are safe from tax. If you based in the UK, good news that you don’t need to pay any direct tax from your gambling winnings. In fact, this tax-free gambling goes for both online and live winnings. Now, this is the real short answer on this page. But, for the longer answer, you will need to come up with some questions. It covers subjects such as the following:
- claiming for loss
- winnings made abroad
- comparison of the tax situation with the other countries
- differences between online and land-based winnings
UK tax changes in the early 2000s
In the year 2002, the labor government avoids consumer taxes on gambling. The 2005 Gambling Act followed the UK Gambling Commission. It remits to regulate the online casinos. The Gambling Act laid out the accepted gaming jurisdictions. It transferred the licensing authority to the local authorities. In fact, it has made playing poker legalized in clubs and pubs. Doing away with the taxation on sports betting on winnings and casino games, online and offline. In the 2104 Gambling Act, the Conservative government attempting to put various poker sites in line and to avoid taxation.
What about the pro poker players?
The United Kingdom residents have zero tax on their usual winnings. But, this page will clear up the mind of a professional player who receives free tournament spots. If this happens, and you win money, then you are eligible to pay tax. In fact, this is only for the particular situation and not for the huge majority of players. In the case of poker winnings from abroad, it has perks. In the United States of America, the citizens must pay tax on the poker winnings. However, by a special agreement with the United Kingdom, the British citizens will remain subject to British law.
Therefore, the USA citizen winner doesn’t need to pay tax on the winnings, which is made in America. However, you need to report to the IRS by filing various forms of winnings and presenting your passport. The US citizens (professional players) can write off their losses against tax. Now, if you are a casino player, there is nothing to worry about paying taxes if you are not a British. You don’t need to pay taxes while winning. As long as the agreement is done in the UK, you are exempted on the tax as well.