Income tax treatment of gaming machine income (Gaming machines)

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Income tax treatment of gaming machine income

From 3 April 2006, all gaming machine income is exempt from income tax as long as:

the organisation is licensed to conduct gaming machine gambling under the Gambling Act 2003, and
they comply with the Act in applying and distributing the net gambling proceeds.

If...	then...	and...
your only source of income is from the gross gambling proceeds	you will automatically qualify for an exemption	you are not required to file income tax returns.*
you receive income from other sources	only the income from gross gambling proceeds will be exempt from income tax, and you may still be liable for an exemption	you will need to file income tax returns unless you have an exemption from us. the conditions for exemption depend on whether the organisation is: established exclusively for charitable purposes, or an amateur sports promoter, or some other type of non-profit organisation.
your organisation is found to be not exempt from income tax	you will be required to file a tax return each year	you should include in the return a: full set of accounts, and schedule of distributions made by the organisation. Don't include any income from gross gambling proceeds from gaming machine income.

* Please let us know if this applies to you so we don't send you any income tax returns.

Date published: 28 Jun 2007

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