British Racing Stands Firm Against Proposed Tax Increases

Introduction to the Tax Dispute

The British Horseracing Authority (BHA) has voiced strong opposition to the Treasury’s proposed increase in remote gambling duty on betting activities. They warn that this tax hike could inflict serious financial damage on one of the United Kingdom’s most historic and cherished sports. The BHA has publicly shared its formal concerns and is encouraging enthusiasts and industry stakeholders to support their campaign.

The Unique Ecosystem of Horse Racing

The BHA emphasizes that horse racing betting should continue to benefit from a distinct and lower tax rate, separate from other forms of online gambling such as slots and casino games. They argue that lumping horse racing tax rates with higher taxes on riskier online gambling activities risks undercutting vital funding streams and threatening the jobs of thousands connected to the sport.

Economic estimates referenced by the BHA suggest that under the proposed tax structure, horse racing could lose at least GBP 66 million annually, with the potential for losses escalating to GBP 160 million in a worst-case scenario. Such cuts could send shockwaves through racecourses, training facilities, stables, and the rural communities dependent on the sport’s prosperity.

The acting CEO of the BHA, Brant Dunshea, highlights the gravity of the situation by stating that if the Chancellor proceeds with this tax increase in the Autumn Budget, it could jeopardize jobs and the future of Britain’s second-largest spectator sport.

Recent Challenges and the Case for Special Treatment

These proposed tax changes would add to recent challenges faced by the sector, including tougher affordability checks for gamblers and delays in promised reforms to the Horse Race Betting Levy. While many regulatory actions aim to protect consumers and update industry rules, the BHA argues that horse racing deserves specific consideration due to its unique status.

Rallying Support: The Axe The Racing Tax Campaign

The BHA’s position rests heavily on the longstanding relationship between horse racing and betting entities. Bookmakers currently support the industry through the Levy, a legal charge that funds prize money, ensures integrity, and promotes equine welfare. This special standing is already recognized through the tax system, where horse racing betting is taxed differently than higher-risk online games.

Leading horse racing organizations such as the Jockey Club, Arena Racing Company, and the Racehorse Owners Association have joined forces with the BHA. Together, they are launching a nationwide campaign titled “Axe The Racing Tax” aimed at mobilizing public backing and influencing policymakers prior to the Autumn Budget.

Brant Dunshea has urged racing fans to contact their Members of Parliament to advocate against the proposed tax rise, emphasizing public involvement as crucial to safeguarding the sport.

Looking Ahead

The Treasury consultation on these tax proposals closes on 21 July, with a final decision expected later in the year. The Chancellor’s Autumn Statement will likely reveal the ultimate tax framework. Meanwhile, the BHA and its allies remain committed to defending the economic foundations of British horse racing, aiming to preserve its legacy and livelihood.