Tax cuts put forward by George Osborne have been designed to encourage online gambling operators to relocate back to Britain.
The proposed cuts would take tax down from 15 per cent to 10 per cent and allow companies to be competitive while being based in the United Kingdom.
Currently, many online gambling companies are based in offshore jurisdictions that offer preferable rates. Among the most popular destinations for gambling companies are Gibraltar, Malta and the Isle of Man.
The current 15 per cent tax rate was introduced by Labour in 2005 but rather than allowing the British government to recoup much needed funds, all it did was alienate gambling companies who soon fled to more financially attractive jurisdictions.
British companies such as Ladbrokes, William Hill, Betfair and bet365 all have their online businesses based abroad so that they can avoid the high tax rates demanded by the UK government.
The Daily Mail reported this week that the move to reduce the tax levels from 15 per cent to 10 per cent is looking increasingly likely as the government continue to look for more ways to generate funds.
Corporate tax has made plenty of headlines recently after the avoidance methods used by Starbucks, Google and Amazon have caused outrage.