Betfair PLC, the the world’s largest betting community, has announced that it is following its competitors Ladbrokes and William Hill in relocating a major part of its business offshore to Gibraltar.
Although it will remain a UK-registered company, the company announced that it would move its critical technology and 120 staff to offices in both Gibraltar and Dublin, Ireland. Around 1,200 staff will remain in the UK.
The move has been prompted by the differential tax rates in Gibraltar and UK, and also by the objective of avoiding double taxation. This is incurred when Betfair has to pay taxes in the country where its customer is located as well as the taxes levied in the UK. The company pays 15 per cent corporation tax in the UK, whereas in Gibraltar this will be 1 per cent. The move will save £10 million in the coming financial year and an estimated £20 million a year thereafter.
As one of the leading players in British horse racing, Betfair has also announced that it will voluntarily carry on paying the £7 million it currently pays to the industry as the Horse Racing Levy.
Subscribe to:
Post Comments (Atom)
Post a Comment