IPC: delay pub AWP machine tax changes

By John Harrington

- Last updated on GMT

Related tags: Profit, Machine, Public house, Treasury

AWPs: IPC wants delay on tax changes
AWPs: IPC wants delay on tax changes
The Government should drop plans to tax gaming machines on their gross profit until the pubco machine tie is scrapped. That's according to the...

The Government should drop plans to tax gaming machines on their gross profit until the pubco machine tie is scrapped.

That's according to the Independent Pub Confederation (IPC), which has told the Treasury that the such a move would disadvantage tenants.

Currently pubs pay a licence fee based on the type of machine. The Treasury has consulted on its plan to replace this with a tax based on the gross profit generated by the system.

In a late submission for the consultation, which ended last month, the newly-formed IPC said the plan is "fundamentally unworkable" with the machine tie.

This is because under the tie, tenants would only take a proportion of the machine's profits despite paying the full tax.

The IPC said: "the continued existence of the machine tie means that the Treasury's proposed tax on gross profits is fundamentally flawed and essentially unworkable.

"The tax change would see the freehold and managed multiple estate under-taxed and place tied tenants in particular at a competitive disadvantage by exposing them to a higher marginal rate of tax.

"The proposals are basically incompatible with a machine tie where the operator doesn't even see, let alone control gross profits."

Related topics: Other operators, Legislation

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