Karen Potts, tax partner at Deloitte, says: "Today's Budget included increased Amusement Machine Licence Duty (AMLD) rates which will impact the bookmaker industry in particular - as well as arcades and clubs. Previously bookmakers were paying no AMLD on Fixed Odd Betting Terminals (FOBTs), instead, until November 2005 they were paying betting duty on net takings at 15%. In the pre-Budget report that position was changed and the FOBTs became liable to VAT at an effective rate based on the calculation of 14.89% - making them slightly better off.

"Today's announcement will mean that from 1 August, the bookies will need to additionally pay AMLD annually on each FOBT at a rate of £1,965. Deferred, but the worst possible outcome in their book; and tens of millions of pounds additional revenue to the Treasury ."

See link below to the relevant HMRC Budget notice:

http://www.hmrc.gov.uk/budget2006/bn62.htm

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