Taxation

Rank made a significant contribution to the British economy in 2010 through tax and employment, as well as benefiting the economies of Spain, Belgium and Alderney through businesses based in or operating in those territories.

Great Britain is Rank’s principal market. Our bingo clubs and casinos in England, Scotland and Wales account for more than 80% of Group revenue and operating profit (before central costs). During 2010, the Group’s businesses generated £156.2m (2009: £146.8m) for the Exchequer and local government in VAT, gaming taxes, income tax, National Insurance contributions and local business rates.

UK tax regime

	Gaming duty/ Gross profits tax	VAT*	AMLD (annual)
Bingo
Main stage bingo	20%**	–	–
Interval bingo	20%**	–	–
Category B3 gaming machines	–	20%	£2,285
Category C gaming machines	–	20%	£860
Casino
Casino games and poker (tax on gaming win in a six-month period)	15% – £0 to £1,975k	–	–
	20% – £1,975k to £3,336.5k	–	–
	30% – £3,336.5k to £5,721.5k	–	–
	40% – £5,721.5k to £10,755k	–	–
	50% – over £10,755k	–	–
Category B1 gaming machines	–	20%	£2,905

1. * The VAT rate was 17.5% throughout 2010 and increased to 20.0% on 4 January 2011.
2. ** The rate of bingo duty was reduced from 22% to 20% for duty periods beginning on or after 29 March 2010.

Spanish tax regime

	Bingo duty*	VAT	Licence (annual)
Bingo duty set by region	15% to 25%	–	–
Category B2/3 gaming machines	–	18%	€3,600
Multi-player electronic casino	–	–	€10,600

1. * Calculated as a percentage of stake.

Belgian tax regime

	Gaming duty*	VAT	Licence (annual)
Table games	33% – €0 to €865k
	44% – over €865k	–	–
Electronic roulette/amusement machines	20% – €0 to €1,200k
	25% – €1,200 to €2,450k
	30% – €2,450 to €3,700k
	35% – €3,700 to €6,150k
	40% – €6,150 to €8,650k
	45% – €8,650 to €12,350k
	50% – over €12,350k	–	–

1. * Calculated as a percentage of gross win.