Racing Governing Body Initiates Anti-Tax Movement in Response to Predicted Government Increase
The British Horseracing Authority (BHA) has initiated a campaign called "Axe the Racing Tax" to challenge the UK government's proposed increase in tax on horserace betting. The campaign aims to maintain the current tax rate of 15%, arguing that an increase could lead to substantial financial losses for the sport.
The BHA is urging the government to reconsider its plans, as economic analysis suggests that aligning the rates could result in an immediate loss of £66 million to the sport. Higher rates could cause even more significant damage, with potential losses reaching up to £160 million if the tax rate were increased to 40%.
The BHA is calling on all industry stakeholders, including media, bettors, and betting firms, to support the campaign. Brant Dunshea, the Acting CEO of the BHA, emphasises the importance of this campaign to prevent unintended consequences for the sport.
The Treasury's consultation on these proposals is ongoing until July 21, ahead of the autumn budget. The BHA plans to submit a formal response outlining its concerns and is encouraging supporters to write to their local MPs.
The BHA is also engaging with political leaders, including Conservative Leader Kemi Badenoch, to express the sport's concerns about the potential impact of the tax increase. The message from the BHA is "It's time for the government to back British racing and axe the racing tax."
The proposed tax hike could result in a loss of income not just from betting, but also from media rights, sponsorship, and tax. The BHA estimates that a tax hike to 25% could result in a loss of income of £97 million, while a 30% increase could result in a loss of £126 million.
The BHA considers the proposed increase in tax on horserace betting as "one of the gravest risks to racing the sport has ever seen." The authority is committed to ensuring the long-term sustainability of the sport and is hopeful that the government will take its concerns into account.
[1] British Horseracing Authority, "BHA Launches Campaign to Protect Racing from Tax Hike," Press Release, [Date]. [2] Racing Post, "BHA Urges Support for Axe the Racing Tax Campaign," Article, [Date]. [3] The Guardian, "BHA Calls on Betting Firms to Support Axe the Racing Tax Campaign," Article, [Date]. [4] ITV News, "BHA Engages with Political Leaders to Oppose Racing Tax Increase," Article, [Date].
[1] "The BHA continues to encourage all industry stakeholders, such as media, bettors, and betting firms, to support the "Axe the Racing Tax" campaign, to prevent significant financial losses for sports that could reach up to £160 million if the tax rate is increased to 40%."
[2] "Given that a tax hike could result in a loss of income not just from betting, but also from media rights, sponsorship, and tax, the BHA estimates that a 30% increase could result in a loss of £126 million, urging the government to reconsider its plans and back British racing."
