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Finance (No. 4) Bill


Finance (No. 4) Bill
Schedule 24 — Machine games duty
Part 1 — Imposition of duty

555

 

the period before the go-live date with the modifications specified in the

notice.

      (2)  

A notice under sub-paragraph (1) must be published by the Commissioners.

      (3)  

For a person who, on the go-live date, is responsible for premises where a

relevant machine is located, the first accounting period is to be the period

5

beginning with that day and ending with—

(a)   

the day before the day on which the next accounting period is to

begin by virtue of a direction given under paragraph 14(2), or

(b)   

such other day as is necessary to give effect to an agreement made

under paragraph 14(4).

10

Consequential amendments

41    (1)  

Section 1(1) of CEMA 1979 (interpretation) is amended as follows.

      (2)  

In the definition of “the revenue trade provisions of the customs and excise

Acts”, at the end insert—

“(f)   

the provisions of Part 1 of Schedule 24 to the Finance Act

15

2012;”.

      (3)  

In the definition of “revenue trader”, in paragraph (a)—

(a)   

omit “or” at the end of sub-paragraph (ic),

(b)   

after that sub-paragraph insert—

“(id)   

being responsible for premises where relevant

20

machines are located (within the meaning of

Part 1 of Schedule 24 to the Finance Act 2012);

or”, and

(c)   

in sub-paragraph (ii), for “or (ic)” substitute “, (ic) or (id)”.

42    (1)  

For section 118BC of that Act (inspection powers: gaming duty) substitute—

25

“118BC  

Inspection powers: gaming duty and machine games duty

(1)   

Subsection (2) applies to premises if an officer has reasonable cause

to believe that—

(a)   

section 10 gaming is taking place, has taken place or is about

to take place on the premises, or

30

(b)   

machines are located on the premises in respect of which a

person is, has been or is about to become liable for machine

games duty.

(2)   

The officer may at any reasonable time enter and inspect the

premises and inspect—

35

(a)   

accounts, records and other documents in the custody or

control of any relevant person, and

(b)   

any relevant equipment.

(3)   

Subsection (1) does not permit an officer to enter or inspect a

particular part of premises if—

40

(a)   

the officer has no reasonable cause to believe that paragraph

(a) or, as the case may be, (b) of that subsection is satisfied

with respect to that particular part, and

(b)   

the part is used solely as a dwelling.

 
 

Finance (No. 4) Bill
Schedule 24 — Machine games duty
Part 1 — Imposition of duty

556

 

(4)   

An officer may at any reasonable time (whether or not as part of an

inspection under subsection (2)) require a relevant person or anyone

acting on such a person’s behalf—

(a)   

to open relevant equipment, and

(b)   

to carry out any other operation that may be necessary to

5

enable the officer to ascertain whether any gaming duty or

machine games duty is payable in respect of it and, if so, how

much.

(5)   

A “relevant person” is—

(a)   

in relation to gaming duty, a person who is engaging, or

10

whom the officer reasonably suspects of engaging, in section

10 gaming or in any activity by reason of which the person is

or may become liable to gaming duty, and

(b)   

in relation to machine games duty, a person who is, has been

or is about to become liable to machine games duty or whom

15

the officer reasonably suspects of being, having been or being

about to become so liable.

(6)   

“Relevant equipment” is—

(a)   

in relation to gaming duty, equipment that is being, or the

officer reasonably suspects of having been or of being

20

intended to be, used on the premises for or in connection with

section 10 gaming, and

(b)   

in relation to machine games duty, any equipment that is, or

the officer reasonably suspects of being, a machine in respect

of which a person is, has been or may become liable to

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machine games duty and any other equipment used in

connection with such a machine.

(7)   

In this section—

(a)   

“section 10 gaming” means gaming to which section 10 of the

Finance Act 1997 applies, and

30

(b)   

a reference to premises where a machine is located is to be

read in accordance with Part 1 of Schedule 24 to the Finance

Act 2012.”

      (2)  

In section 118G of that Act (offences under Part 9A), in subsection (1), for “or

section 118B” substitute “, 118B or 118BC(4)”.

35

43         

In section 2 of BGDA 1981 (bookmakers: general bets), in subsection (2), omit

paragraph (d).

44    (1)  

Section 26H of BGDA 1981 (exemptions from remote gaming duty) is

amended as follows.

      (2)  

After subsection (2A) insert—

40

“(2B)   

Subsection (2) does not apply in cases where the other gambling tax

is machine games duty.”

      (3)  

In subsection (3), before paragraph (b) insert—

“(aa)   

machine games duty,”.

45         

In Schedule A1 to BGDA 1981 (betting duties: double taxation relief), in

45

paragraph 7, after paragraph (c) insert—

“(ca)   

machine games duty,”.

 
 

Finance (No. 4) Bill
Schedule 24 — Machine games duty
Part 1 — Imposition of duty

557

 

46         

In Schedule 4B to BGDA 1981 (remote gaming duty: double taxation relief),

in paragraph 7, after paragraph (c) insert—

“(ca)   

machine games duty,”.

47         

In section 12 of FA 1994 (assessment to excise duty), in subsection (2)(c), after

“1997” insert “or Part 1 of Schedule 24 to the Finance Act 2012”.

5

48         

In section 10 of FA 1997 (gaming duty), for subsection (3AA) substitute—

“(3AA)   

This section does not apply to the playing of a game in respect of

which—

(a)   

bingo duty or lottery duty is chargeable, or would be

chargeable but for an express exception, or

10

(b)   

machine games duty is chargeable.”

49         

In section 7 of the Borders, Citizenship and Immigration Act 2009 (Customs

revenue functions of the director), in subsection (2)(e)—

(a)   

omit “and” at the end of sub-paragraph (vi), and

(b)   

at the end of sub-paragraph (vii) insert “and

15

(viii)   

machine games duty;”.

Interpretation

50         

In this Part of this Schedule—

“appeal tribunal” means the First-tier Tribunal or, where determined

by or under Tribunal Procedure Rules, the Upper Tribunal;

20

“cash” has the meaning given in paragraph 2 (and “non-cash” is to be

read accordingly);

“charge”, in relation to a game, means a charge or deduction in money

or money’s worth, however it is described or levied and whether it

becomes due before or after the game is played;

25

“the Commissioners” means the Commissioners for Her Majesty’s

Revenue and Customs;

“dutiable machine game” has the meaning given in paragraph 2,

subject to paragraphs 3 and 4;

“game” does not include a sport;

30

“the go-live date” is defined in paragraph 66(5);

“HMRC” means Her Majesty’s Revenue and Customs;

“machine” means any apparatus that uses or applies mechanical

power, electrical power or both;

“machine game” has the meaning given in paragraph 2;

35

“MGD register” has the meaning given in paragraph 20;

“money” means money in sterling or any other currency;

“payouts” means prizes paid out to players as a result of playing

dutiable machine games on a machine;

“the payouts”, in relation to a particular taxable person and accounting

40

period, has the meaning given in paragraph 7;

“premises” includes any place, any means of transport and any stall or

other moveable structure;

“prize”, in relation to a game—

(a)   

means a prize in the form of cash or non-cash (or both),

45

however it is described or paid out and whether it is a prize

 
 

Finance (No. 4) Bill
Schedule 24 — Machine games duty
Part 1 — Imposition of duty

558

 

provided by a person making the game available or is

winnings of money staked, but

(b)   

a benefit consisting of nothing more than the opportunity to

play the game again does not count as a prize;

“registered” has the meaning given in paragraph 12 (and “registration”

5

is to be read accordingly);

“registrable person” has the meaning given in paragraph 21;

“relevant machine” means—

(a)   

a machine in respect of which machine games duty is or will

be chargeable, or

10

(b)   

in relation to a particular taxable person and accounting

period, a machine in respect of which that person is liable for

machine games duty in that period;

“representative” means a personal representative, trustee in

bankruptcy, receiver or liquidator or any other person acting in a

15

representative capacity;

“specified” includes described;

“takings” means charges due from players for playing dutiable

machine games on a machine;

“the takings”, in relation to a particular taxable person and accounting

20

period, has the meaning given in paragraph 7;

“taxable person” has the meaning given in paragraph 11;

“total net takings” has the meaning given in paragraph 6;

“United Kingdom” includes the territorial sea of the United Kingdom.

51    (1)  

This Part of this Schedule is to be read in accordance with this paragraph.

25

      (2)  

A person “plays” a game if the person participates in the game—

(a)   

whether or not there are other participants in the game, and

(b)   

whether or not a computer generates images or data taken to

represent the actions of other participants in the game.

      (3)  

A reference to the charge (or the lowest or highest charge) payable for

30

playing a machine game—

(a)   

is a reference to the charge (or the lowest or highest charge) payable

for a single go at playing the game, and

(b)   

includes any charge that entitles the person paying it to play a

machine game or to play it at a reduced rate (even if the charge is

35

ostensibly a charge for something else).

      (4)  

A reference to “paying” a charge is to be read, in the case of a charge in

money’s worth, as a reference to the provision of the thing, or performance

of the service, in money’s worth.

      (5)  

A reference to a prize (or the maximum amount of cash) that can be won

40

from playing a machine game is a reference to a prize (or the maximum

amount of cash) that can be won from a single go at playing the game.

      (6)  

A reference to “paying out” a prize is to be read, in the case of a prize in

money’s worth, as a reference to the provision of the thing, or performance

of the service, in money’s worth.

45

      (7)  

A reference to the premises where a machine is located or made available

includes, in the case of a portable machine, the premises where the machine

is issued to those wanting to play dutiable machines games on it.

 
 

Finance (No. 4) Bill
Schedule 24 — Machine games duty
Part 2 — Removal of amusement machine licence duty

559

 

52         

The imposition or payment of machine games duty does not make lawful

anything that is otherwise unlawful.

Part 2

Removal of amusement machine licence duty

Amendment of BGDA 1981

5

53         

The following provisions of BGDA 1981 are omitted—

(a)   

sections 21 to 26,

(b)   

section 26H(3)(a),

(c)   

section 26N(3) and (4), and

(d)   

Schedules 4 and 4A.

10

54    (1)  

Part 3 of that Act (general) is amended as follows.

      (2)  

In section 27 (offences by bodies corporate), for the words from “section 24”

to “Schedule 4” substitute “paragraph 13(1) or (3) or 14(1) of Schedule 1 or

paragraph 16 of Schedule 3”.

      (3)  

In section 31 (protection of officers), for “remote gaming duty or the duty on

15

amusement machine licences” substitute “or remote gaming duty”.

      (4)  

In section 33 (interpretation), in subsection (2), for “remote gaming duty or

the duty on amusement machine licences” substitute “or remote gaming

duty”.

Amendment of other enactments

20

55         

In section 102 of CEMA 1979, in subsection (3)(a), omit “or an amusement

machine licence”.

56         

In section 10 of FA 1997 (gaming duty), omit subsection (3A).

57         

In Schedule 41 to FA 2008 (penalties: failure to notify and certain VAT and

excise wrongdoing), in the Table in paragraph 1, omit the entry relating to

25

amusement machine licence duty.

58         

In section 7 of the Borders, Citizenship and Immigration Act 2009 (Customs

revenue functions of the director), in subsection (2)(e), omit sub-paragraph

(i).

Transitional provision and savings

30

59    (1)  

If a licence granted under section 21 of BGDA 1981 is to expire on or after the

go-live date, the holder of the licence is entitled to repayment of an amount

of duty.

      (2)  

That amount is the difference between—

(a)   

the amount of duty actually paid on the licence before the go-live

35

date in accordance with section 23 of that Act, and

(b)   

the amount (if less) determined in accordance with sub-paragraph

(3).

      (3)  

The amount is to be determined as follows—

           

Step 1

40

 
 

Finance (No. 4) Bill
Schedule 24 — Machine games duty
Part 2 — Removal of amusement machine licence duty

560

 

           

Calculate the amount of duty that would have been paid if the period for

which the licence was granted had been the number of complete months

beginning with the date on which the licence was granted and ending

immediately before the go-live date. The day immediately following the end

of that period of complete months is referred to as “day X”.

5

           

           

Step 2

           

Add to the amount calculated under Step 1 an amount representing the duty

payable for the period of days beginning with day X and ending with the

day before the go-live date. The duty payable for each such day in that

10

period is to be calculated as 1/365th of the amount of duty payable for a

licence of 12 months for a machine of the relevant category.

           

      (4)  

If—

(a)   

duty is being paid on the licence in accordance with arrangements

15

made under paragraph 7A of Schedule 4 to BGDA 1981 (payment of

duty by instalments), and

(b)   

the amount of duty actually paid on the licence before the go-live

date in accordance with section 23 of that Act is less than the amount

determined in accordance with sub-paragraph (3),

20

           

the difference between those amounts is to be treated under that Act as

unpaid duty.

      (5)  

If a person entitled to a repayment of more than £10 under this paragraph

has not received the repayment within the period of 90 days beginning with

the go-live date—

25

(a)   

the person may give notice to HMRC of that fact,

(b)   

the Commissioners must pay interest to the person on the amount of

the repayment for the period from the end of that 90-day period until

the day on which the repayment is made, and

(c)   

any such interest accrues at the rate under section 197 of FA 1996

30

(rates of interest) that is applicable for Parts 2 and 3 of Schedule 3 to

FA 2001 (excise duty payment by Commissioners in case of error or

delay).

60    (1)  

If a licence granted or to be granted under section 21 of BGDA 1981 would

expire within the period of 30 days ending with the go-live date, a person

35

may apply—

(a)   

for the licence to be treated as extended for the necessary period, or

(b)   

for a new amusement machine licence to be treated as granted in its

place under Schedule 4 to that Act for the necessary period.

      (2)  

The necessary period is the period from expiry of the licence until

40

immediately before the go-live date.

      (3)  

An application under this paragraph may be made before or after the licence

is granted but, if made after the licence is granted, it must be made before the

day on which the licence is to expire.

      (4)  

The application must be made to HMRC in such form and manner as HMRC

45

may require.

 
 

Finance (No. 4) Bill
Schedule 24 — Machine games duty
Part 2 — Removal of amusement machine licence duty

561

 

      (5)  

HMRC must grant the application once it has received payment of an

amount of duty payable on the licence (or new licence) in respect of the

necessary period.

      (6)  

The amount of duty payable in respect of the necessary period is to be the

sum of the amounts payable for each day in that period, each such amount

5

being 1/365th of the duty payable for a licence of 12 months for a machine

of the relevant category.

      (7)  

Schedule 4 to BGDA 1981 and any regulations made under that Schedule

apply (subject to any modifications specified by the Commissioners in a

notice published for the purposes of this paragraph) to an amount of duty

10

payable in accordance with this paragraph as to an amount of duty payable

in accordance with section 23 of that Act.

      (8)  

Nothing in this paragraph affects the operation of that Act with respect to

the provision of amusement machines in the necessary period in a case

where no application is made under this paragraph or an application is not

15

granted.

      (9)  

But if a default licence is granted under Schedule 4A to BGDA 1981 for the

necessary period, the amount of duty that may be assessed under paragraph

4 of that Schedule is limited to the amount that would have been payable if

an application had been made for a licence under this paragraph.

20

61    (1)  

This paragraph applies to licences to be granted under section 21 of BGDA

1981 on or after 2 January 2013 (a “final month licence”).

      (2)  

Section 21(3) of that Act has effect as if—

(a)   

the requirement to grant amusement machine licences for a period of

one or more whole months were omitted, and

25

(b)   

the power to grant amusement machine licences for a period not

exceeding 12 months were a power to grant such licences for a period

ending with a day that is no later than the day before the go-live date.

      (3)  

The requirement in section 21(4) of that Act to grant special amusement

machine licences for a period of 12 months has effect in relation to a final

30

month licence as if it were a requirement to grant a licence for the period

beginning with the date of grant and ending with the day before the go-live

date.

      (4)  

The amount of duty payable on a final month licence is to be calculated in

the manner described in paragraph 60(6).

35

      (5)  

The Commissioners may by notice direct that Schedules 4 and 4A to BGDA

1981 and any regulations made under those Schedules are to apply to a final

month licence with such modifications as may be specified in the notice.

      (6)  

A notice under sub-paragraph (5) must be published by the Commissioners.

62    (1)  

The enactments repealed by this Part of this Schedule continue to have effect

40

on and after the go-live date in relation to the provision of amusement

machines before that date.

      (2)  

Enactments continuing to have effect by virtue of sub-paragraph (1) are to

be read with any necessary modifications.

      (3)  

Without prejudice to the generality of sub-paragraph (2), paragraph 4 of

45

Schedule 4A to BGDA 1981 (assessment of amount equivalent to duty) is to

 
 

 
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Revised 28 March 2012