Company: BRSL
Filing Date: 2025-02-25
Form Type: 20-F
Source: 0001619762-25-000007
Chunk: 97

Company: Brightstar Lottery PLC
Filing Date: 2025-02-25
Form: 20-F
Item: Item 9
Chunk 97
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 agency (or, in the case of a corporate holder of ordinary shares, through a permanent establishment) to which the ordinary shares are attributable. However, an individual shareholder who has ceased to be resident in the U. K. for a period of less than five (5) years (and had U. K. residence for at least four (4) out of the seven (7) tax years immediately prior to the year of departure) and who disposes of the Parent’s ordinary shares during that period of temporary non-residence may be liable upon return to the U. K. (or upon ceasing to be regarded as resident outside the U. K.) to U. K. taxation on any capital gain so realized (subject to any available exemption or relief).

Table of Contents

Diverted Profits Tax

The U. K. diverted profits tax (“ DPT”) is currently separate from U. K. corporation tax and is charged at a higher rate of 31% (subject to certain limited exceptions). It is an anti-avoidance measure aimed at protecting the U. K. tax base against the artificial diversion of profits that are being earned by activities carried out in the U. K. but which are not otherwise being taxed in the U. K., in particular as a result of arrangements amongst companies in the same multinational group. The U. K.’s network of double tax treaties does not currently offer protection from a DPT charge. In the event that the rules apply to certain arrangements, then upfront payment of HMRC’s estimate of the deemed tax liability may be required. If any of our U. K. or non-U. K. companies is liable for DPT as a result of intra-group arrangements, this could have a material adverse effect on the Company’s and/or the Parent’s results. HMRC’s response to the June 19, 2023 consultation to reform U. K. law in relation to transfer pricing, permanent establishment, and DPT, published on January 16, 2024, proposed to remove DPT’s status as a separate tax and bring in an equivalent charge to U. K. corporation tax. Broadly, that reform would be intended to clarify the relationship between DPT and transfer pricing and provide access to treaty benefits for DPT.

Inheritance Tax

The Parent’s ordinary shares will be assets situated in the U. K. for the purposes of U. K. inheritance tax. A gift or settlement of such assets by, or on the death of, an individual holder