SCHEDULE 22 continued
14 (1) Section 349 (orders) is amended as follows.
(2) In subsection (1), before “qualifying oil fields” insert “additionally-developed oil fields or”.
(3) In subsection (2), for “new oil field” (in both places) substitute “eligible oil field”.
(4) After subsection (2) insert—
“(2A) The Commissioners for Her Majesty’s Revenue and Customs may by order make provision about the meaning of any term used in this Chapter.”
(5) For subsection (3) substitute—
“(3) The provision that may be made by an order under this section includes—
(a) provision amending this Chapter,
(b) provision that has effect in relation to times before the order is made and does not increase any person’s liability to tax, and
(c) incidental, supplemental, consequential, transitional or saving provision, including provision amending, repealing or revoking any provision made by or under this Act.”
15 Before section 350 insert—
(1) In this Chapter an oil field is an “additionally-developed oil field” if—
(a) a national authority has authorised a project described in an addendum to the consent for development for the oil field, and
(b) the project meets such conditions as may be specified in an order made by the Commissioners for Her Majesty’s Revenue and Customs.
(2) In this section—
“consent for development”, in relation to an oil field, does not include consent which is limited to the purpose of testing the characteristics of an oil-bearing area,
“development”, in relation to an oil field, means winning oil from the field otherwise than in the course of searching for oil or drilling wells, and
“national authority” means—
the Secretary of State, or
a Northern Ireland department.
(3) An order under this section may include provision having effect in relation to times before it is made, provided that it does not increase any person’s liability to tax.
(4) No order may be made under this section unless a draft of the statutory instrument containing it has been laid before and approved by a resolution of the House of Commons.”
16 (1) Section 357 (other definitions) is amended as follows.
(2) For the definition of “authorisation day” substitute—
““authorisation day” means—
in relation to an additionally-developed oil field, the day when the project mentioned in section 349A(1) is authorised, and
in relation to a new oil field, the day when development of the field is authorised as mentioned in section 350(1)(b),”.
(3) After that definition insert—
““eligible oil field” means an oil field which is an additionally-developed oil field or a new oil field,”.
(4) Omit the definition of “initial licensee”.
(5) In the definition of “relevant income”, for “a new oil field” substitute “an eligible oil field”.
17 The heading of the Chapter becomes “REDUCTION OF SUPPLEMENTARY CHARGE FOR ELIGIBLE OIL FIELDS”.
18 (1) Part 8 of CTA 2010 (oil activities) is amended as follows.
(2) In section 270 (overview of Part)—
(a) in subsection (7), for “certain new oil fields” substitute “eligible oil fields”, and
(b) in subsection (8), for paragraph (c) substitute—
“(c) eligible oil field”, see section 357.”
(3) In section 330 (supplementary charge in respect of ring fence trades), in subsection (5), for “certain new oil fields” substitute “eligible oil fields”.
19 (1) Schedule 4 to CTA 2010 (index of defined expressions) is amended as follows.
(2) At the appropriate place insert—
| “eligible oil field (in Chapter 7 of Part 8) | section 357”; |
| “additionally-developed oil field (in Chapter 7 of Part 8) | section 349A”. |
(3) Omit the entry relating to “initial licensee (in Chapter 7 of Part 8)”.
20 In section 63 of FA 2011 (reduction of supplementary charge for new oil fields), omit subsection (3).
21 (1) The amendments made by paragraphs 14, 15 and 16(3) come into force on the day on which this Act is passed.
(2) The other amendments made by this Schedule come into force in accordance with provision contained in an order made by the Treasury.
(3) An order made under sub-paragraph (2) may—
(a) make different provision for different purposes;
(b) provide for such amendments to have effect in relation to times before the order is made.
22 (1) The Commissioners for Her Majesty’s Revenue and Customs may by order make any incidental, supplemental, consequential, transitional or saving provision in consequence of the amendments made by this Schedule.
(2) An order under this paragraph may—
(a) amend, repeal or revoke any provision made by or under CTA 2010;
(b) include provision having effect in relation to times before it is made, provided that it does not increase any person’s liability to tax.
Section 189
1 In section 30 of FA 1994 (air passenger duty: rates of duty) after subsection (4A) insert—
“(4B) Subsection (4C) applies if—
(a) the passenger’s journey is a relevant Northern Ireland journey, and
(b) apart from subsection (4C), subsection (2) would not apply to the journey.
(4C) The applicable rate in subsection (2) applies to the journey instead of the applicable rate in subsection (3), (4) or (4A) (as the case may be).
(4D) A passenger’s journey is a “relevant Northern Ireland journey”—
(a) in the case of a journey which has only one flight, if the flight begins in Northern Ireland, and
(b) in any other case, if the first flight of the journey—
(i) begins in Northern Ireland, and
(ii) is not followed by a connected flight beginning at a place in the United Kingdom or a territory specified in Part 1 of Schedule 5A.”
2 In article 3 of the Air Passenger Duty (Connected Flights) Order 1994 (S.I. 1994/1821) for “section 30(6), or section 31(3),” substitute “Chapter 4 of Part 1”.
3 The amendments made by this Part of this Schedule have effect in relation to the carriage of passengers beginning on or after 1 November 2011 but before 1 April 2012.
4 (1) Section 30 of FA 1994 (air passenger duty: rates of duty) is amended as follows.
(2) In subsection (2)—
(a) in paragraph (a) for “£12” substitute “£13”, and
(b) in paragraph (b) for “£24” substitute “£26”.
(3) In subsection (3)—
(a) in paragraph (a) for “£60” substitute “£65”, and
(b) in paragraph (b) for “£120” substitute “£130”.
(4) In subsection (4)—
(a) in paragraph (a) for “£75” substitute “£81”, and
(b) in paragraph (b) for “£150” substitute “£162”.
(5) In subsection (4A)—
(a) in paragraph (a) for “£85” substitute “£92”, and
(b) in paragraph (b) for “£170” substitute “£184”.
(6) After subsection (4A) insert—
“(4B) Subsection (4C) applies if—
(a) the passenger’s journey is a relevant Northern Ireland journey, and
(b) apart from subsection (4C), subsection (2) would not apply to the journey.
(4C) The applicable rate in subsection (2) applies to the journey instead of the applicable rate in subsection (3), (4) or (4A) (as the case may be).
(4D) A passenger’s journey is a “relevant Northern Ireland journey”—
(a) in the case of a journey which has only one flight, if the flight begins in Northern Ireland, and
(b) in any other case, if the first flight of the journey—
(i) begins in Northern Ireland, and
(ii) is not followed by a connected flight beginning at a place in the United Kingdom or a territory specified in Part 1 of Schedule 5A.”
5 In article 3 of the Air Passenger Duty (Connected Flights) Order 1994 (S.I. 1994/1821) for “section 30(6), or section 31(3),” substitute “Chapter 4 of Part 1”.
6 The amendments made by this Part of this Schedule have effect in relation to the carriage of passengers beginning on or after 1 April 2012.
7 Chapter 4 of Part 1 of FA 1994 (air passenger duty) is amended as follows.
8 (1) Section 30 (rates of duty) is amended as follows.
(2) After subsection (1) insert—
“(1A) Subsection (1) does not apply to the carriage of a chargeable passenger to which section 30A below (Northern Ireland long haul rates of duty) applies.”
(3) Omit subsections (4B) to (4D) (as inserted by paragraph 4(6) above).
(4) The amendments made by this paragraph have effect in relation to the carriage of passengers beginning on or after the relevant day as defined in section 30A of FA 1994 (as inserted by paragraph 9 below).
9 After section 30 insert—
(1) This section applies to the carriage of a chargeable passenger if—
(a) the carriage begins on or after the relevant day,
(b) the only flight, or the first flight, of the passenger’s journey begins at a place in Northern Ireland,
(c) the passenger’s journey does not end at a place in the United Kingdom or a territory specified in Part 1 of Schedule 5A, and
(d) if the passenger’s journey has more than one flight, the first flight is not followed by a connected flight beginning at a place in the United Kingdom or a territory specified in Part 1 of Schedule 5A.
(2) Air passenger duty is chargeable on the carriage of the chargeable passenger at the rate determined as follows.
(3) If the passenger’s journey ends at a place in a territory specified in Part 2 of Schedule 5A—
(a) if the passenger’s agreement for carriage provides for standard class travel in relation to every flight on the passenger’s journey, the rate is the rate set by an Act of the Northern Ireland Assembly for the purposes of this paragraph, and
(b) in any other case, the rate is the rate set by an Act of the Northern Ireland Assembly for the purposes of this paragraph.
(4) If the passenger’s journey ends at a place in a territory specified in Part 3 of Schedule 5A—
(a) if the passenger’s agreement for carriage provides for standard class travel in relation to every flight on the passenger’s journey, the rate is the rate set by an Act of the Northern Ireland Assembly for the purposes of this paragraph, and
(b) in any other case, the rate is the rate set by an Act of the Northern Ireland Assembly for the purposes of this paragraph.
(5) If the passenger’s journey ends at any other place—
(a) if the passenger’s agreement for carriage provides for standard class travel in relation to every flight on the passenger’s journey, the rate is the rate set by an Act of the Northern Ireland Assembly for the purposes of this paragraph, and
(b) in any other case, the rate is the rate set by an Act of the Northern Ireland Assembly for the purposes of this paragraph.
(6) The rate of £0 may be set for the purposes of any paragraph.
(7) The same rate may be set for the purposes of two or more paragraphs.
(8) Subsections (5) to (7) and (10) to (12) of section 30 apply for the purposes of this section as they apply for the purposes of that section.
(9) “The relevant day” means the day appointed as such by an order.
(10) Section 42(4) and (5) does not apply to an order under subsection (9).
(11) None of the following applies to any matter in respect of which this section authorises provision to be made by an Act of the Northern Ireland Assembly—
(a) any paragraph of Schedule 2 or 3 to the Northern Ireland Act 1998 (excepted and reserved matters);
(b) section 63 of that Act (financial acts of the Assembly).
(12) A Bill containing provision authorised by this section may not be passed by the Northern Ireland Assembly except in pursuance of a recommendation which—
(a) is made by the Minister of Finance and Personnel, and
(b) is signified to the Assembly by the Minister or on the Minister’s behalf.
(13) A Bill containing provision authorised by this section may not be passed by the Northern Ireland Assembly without cross-community support (as defined in section 4(5) of the Northern Ireland Act 1998).
(14) “Passed”, in relation to a Bill, means passed at the final stage (at which the Bill can be passed or rejected but not amended).
(15) Duty paid to the Commissioners in respect of the carriage of chargeable passengers to which this section applies must be paid by the Commissioners into the Consolidated Fund of Northern Ireland.”
10 (1) Section 33 (registration of aircraft operators) is amended as follows.
(2) After subsection (2) insert—
“(2A) If the Commissioners decide to keep a register under section 33Abelow, an operator of a chargeable aircraft does not become liable to be registered under this section just because the aircraft is used for the carriage of chargeable passengers to which section 30A above applies.”
(3) In subsection (3)(b) after “passengers” insert “or, if the Commissioners have decided to keep a register under section 33A below, that no chargeable aircraft which he operates will be used for the carriage of chargeable passengers apart from the carriage of chargeable passengers to which section 30A above applies”.
(4) In subsection (4) after “registered” (in both places) insert “under this section”.
(5) In subsection (7) after “section” insert “or section 33A below”.
11 After section 33 insert—
(1) The Commissioners may under this section keep a register of aircraft operators.
(2) If the Commissioners decide to keep a register under this section, the operator of a chargeable aircraft becomes liable to be registered under this section if the aircraft is used for the carriage of chargeable passengers to which section 30A above applies.
(3) A person who has become liable to be registered under this section ceases to be so liable if the Commissioners are satisfied at any time—
(a) that he no longer operates any chargeable aircraft, or
(b) that no chargeable aircraft which he operates will be used for the carriage of chargeable passengers to which section 30A above applies.
(4) A person who is not registered under this section and has not given notice under this subsection shall, if he becomes liable to be registered under this section at any time, give written notice of that fact to the Commissioners not later than the end of the prescribed period beginning with that time.
(5) Notice under subsection (4) above shall be in such form, be given in such manner and contain such information as the Commissioners may direct.”
12 In section 34 (fiscal representatives) in subsection (5)—
(a) omit “under section 33 above”, and
(b) in paragraph (a) for “that section” substitute “section 33 or 33A above”.
13 After section 41 insert—
(1) An officer of Revenue and Customs may disclose to the Secretary of State, the Treasury or the Department of Finance and Personnel in
Northern Ireland any information for purposes connected with the setting of rates of duty under section 30A above, including (in particular) to enable the setting of rates under that section to be taken into account for the purposes of section 58 of the Northern Ireland Act 1998 (payments by Secretary of State into Consolidated Fund of Northern Ireland).
(2) Information disclosed under subsection (1) above may not be further disclosed without the consent of the Commissioners (which may be general or specific).
(3) In section 19 of the Commissioners for Revenue and Customs Act 2005 (wrongful disclosure) references to section 18(1) of that Act are to be read as including a reference to subsection (2) above.”
14 In section 44 of CRCA 2005 (payment into Consolidated Fund) after subsection (2)(c) insert—
“(ca) sums required by section 30A(15) of the Finance Act 1994 (air passenger duty: Northern Ireland long haul rates of duty) to be paid into the Consolidated Fund of Northern Ireland,”.
15 In column 2 of the Table in paragraph 1 of Schedule 41 to FA 2008 (penalties for failure to notify), in the entry relating to air passenger duty, after “33(4)” insert “or 33A(4)”.
16 Chapter 4 of Part 1 of FA 1994 (air passenger duty) is amended as follows.
17 In section 28 (introduction to air passenger duty) for subsection (3) substitute—
“(3) Sections 29 and 29A below set out how to determine if an aircraft is a chargeable aircraft for the purposes of this Chapter.”
18 (1) Section 29 (chargeable aircraft) is amended as follows.
(2) For subsection (1) substitute—
“(1) For the purposes of this Chapter an aircraft is a chargeable aircraft if—
(a) it is a fixed-wing aircraft designed or adapted to carry persons in addition to the flight crew,
(b) its authorised take-off weight is not less than 5.7 tonnes, and
(c) it is fuelled by kerosene (as defined in section 1(8) of the Hydrocarbon Oil Duties Act 1979).”
(3) In subsection (2) for “ten” (wherever occurring) substitute “5.7”.
(4) Omit subsection (3).
19 After section 29 insert—
(1) This section applies for the purposes of this Chapter.
(2) An aircraft is not a chargeable aircraft whenever its operation falls within an exemption set out in sub-paragraph (b), (c), (f) or (g) under the category of activity “Aviation” in Annex I to Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 (as amended by Directive 2008/101/EC of the European Parliament and of the Council of 19 November 2008).
(3) Those exemptions are to be read in accordance with paragraphs 2.2 to 2.5 of the Annex to Commission Decision 2009/450/EC of 8 June 2009.
(4) An aircraft is not a chargeable aircraft whenever it is being operated under a public service obligation imposed under Article 16 of Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008 (common rules for the operation of air services).”
20 In section 30 (rate of duty) before subsection (5) insert—
“(4E) In relation to the carriage of a chargeable passenger on an aircraft to which subsection (4F) applies—
(a) if the rate which (apart from this subsection) would apply is the rate in subsection (2)(a) or (b), a rate equal to twice the rate in subsection (2)(b) is to apply instead,
(b) if the rate which (apart from this subsection) would apply is the rate in subsection (3)(a) or (b), a rate equal to twice the rate in subsection (3)(b) is to apply instead,
(c) if the rate which (apart from this subsection) would apply is the rate in subsection (4)(a) or (b), a rate equal to twice the rate in subsection (4)(b) is to apply instead, and
(d) if the rate which (apart from this subsection) would apply is the rate in subsection (4A)(a) or (b), a rate equal to twice the rate in subsection (4A)(b) is to apply instead.
(4F) This subsection applies to an aircraft if—
(a) its authorised take-off weight is not less than 20 tonnes, but
(b) it is not authorised to seat more than 18 persons (excluding members of the flight crew and cabin attendants).
(4G) In subsection (4F)(a) “take-off weight” is to be read in accordance with section 29(2) but as if “20” were substituted for “5.7” wherever occurring.
(4H) For the purposes of subsection (4F)(b) an aircraft is authorised to seat more than 18 persons (excluding members of the flight crew and cabin attendants) if—
(a) there is a certificate of airworthiness (as defined in section 29(4)) in force in respect of the aircraft showing that the maximum number of persons who may be seated on the aircraft (excluding members of the flight crew and cabin attendants) is more than 18, or
(b) the Commissioners are satisfied that the aircraft is designed or adapted to seat more than 18 persons (excluding members of the flight crew and cabin attendants) or the aircraft belongs to a class or description of aircraft in respect of which the Commissioners are so satisfied.”
21 In section 30A (as inserted by paragraph 9 above) after subsection (7)insert—
“(7A) In relation to the carriage of a chargeable passenger on an aircraft to which section 30(4F) applies—
(a) if the rate which (apart from this subsection) would apply is the rate set for the purposes of subsection (3)(a) or (b), a rate equal to twice the rate set for the purposes of subsection (3)(b)is to apply instead,
(b) if the rate which (apart from this subsection) would apply is the rate set for the purposes of subsection (4)(a) or (b), a rate equal to twice the rate set for the purposes of subsection (4)(b)is to apply instead, and
(c) if the rate which (apart from this subsection) would apply is the rate set for the purposes of subsection (5)(a) or (b), a rate equal to twice the rate set for the purposes of subsection (5)(b)is to apply instead.”
22 (1) Section 43 (interpretation) is amended as follows.
(2) In subsection (1) for the definition of “passenger” substitute—
““passenger”, in relation to any aircraft, means any person carried on the aircraft other than—
a member of the flight crew,
a cabin attendant, or
a person who is not carried for reward and who satisfies such other requirements as may be prescribed.”
(3) After subsection (1) insert—
“(1A) The agreements and arrangements covered by the definition of “agreement for carriage” in subsection (1) include informal agreements or arrangements between, for example, members of a family or friends.”
23 The amendments made by this Part of this Schedule have effect in relation to the carriage of passengers beginning on or after 1 April 2013.
Section 190
1 A duty of excise, to be known as machine games duty, is to be charged on the playing of dutiable machine games in the United Kingdom.
2 (1) A “machine game” is a game (whether of skill or chance or both) played on a machine for a prize.
(2) A machine game is “dutiable” if—
(a) the prize or at least one of the prizes that can be won from playing the game on the machine is or includes cash, and
(b) the maximum amount of cash that a player can win from playing the game on the machine exceeds the lowest charge payable for playing the game on the machine.
(3) “Cash” means money or anything that may reasonably be considered to equate to money, including—
(a) anything that can be used in the same way as if it were money, and
(b) anything that allows a person to obtain money on demand or otherwise represents a promise to pay a person money on demand.
(4) The things mentioned in sub-paragraph (3) include—
(a) anything of an intangible nature (such as points), and
(b) anything that a person has as a result of the taking of any step by someone else (such as the crediting of an account).
(5) If an adult would reasonably assume that a machine game satisfies the tests in sub-paragraph (2)(a) and (b) (taking into account the way in which the game is presented and all the other circumstances of the case), the game is taken to be a dutiable machine game, whether or not it does in fact satisfy those tests.
(6) In identifying for the purposes of this paragraph the lowest charge payable for playing a game, any offer that waives or permits a player to pay less than the charge that the player would be required to pay without the offer is disregarded.
(7) Paragraph 3 makes further provision about what counts as a dutiable machine game for the purposes of this Schedule.
3 (1) A game that would otherwise be a dutiable machine game does not count as one if—
(a) it involves betting on future real events,
(b) bingo duty is charged on the playing of it,
(c) lottery duty is charged on the taking of a ticket or chance in it, or
(d) it is a real game of chance and playing it—
(i) amounts to dutiable gaming for the purposes of section 10 of FA 1997, or
(ii) would do so but for subsection (3), (3B) or (4) of that section.
(2) A “real game of chance” is a game of chance (within the meaning of BGDA 1981) that is non-virtual.
(3) A game consisting of several stages counts as a dutiable machine game if—
(a) at least one stage would (if played on its own) be a dutiable machine game, or
(b) the stages (taken together) amount to a dutiable machine game.
(4) If more than one game can be played on a given machine, each game is to be considered separately in deciding whether it is a dutiable machine game.
4 The Treasury may by order specify criteria to be taken into account in deciding—
(a) whether a particular game (or class of game) falls within the definitions in paragraph 2(1) and (2), and
(b) what counts as a single go at playing a particular game (or class of game).
5 (1) Machines are divided into two types for the purposes of machine games duty.
(2) A machine is a “type 2 machine” if it can be demonstrated that—
(a) the highest charge payable for playing a dutiable machine game on the machine does not exceed 10p, and
(b) the maximum amount of cash that can be won from playing a dutiable machine game on the machine does not exceed £8.
(3) Any other machine is a “type 1 machine”.
(4) The Treasury may by order substitute for a sum for the time being specified in sub-paragraph (2)(a) or (b) such higher sum as may be specified in the order.
6 (1) Machine games duty is charged on a taxable person’s total net takings in an accounting period for each type of machine.
(2) The amount of the duty is found by—
(a) applying the standard rate to the person’s total net takings in the accounting period for type 1 machines,
(b) applying the lower rate to the person’s total net takings in the accounting period for type 2 machines, and
(c) aggregating the results.
(3) This is subject to paragraph 10 (negative amounts of duty).
(4) The person’s “total net takings” in the accounting period for a type of machine are the sum of the person’s net takings in the period for all the relevant machines of that type.
(5) The person’s “net takings” in the period for each relevant machine are determined in accordance with paragraphs 7 and 8.
(6) If any of the relevant machines changes type during the accounting period—
(a) the net takings in the part of the period before the change and the net takings in the part after the change are to be allocated separately in calculating the person’s total net takings in the period for each type of machine, and
(b) if it is not possible to identify the part of a period to which an amount relates, the amount is to be apportioned on a just and reasonable basis.
(7) For the meaning of “relevant machine” in relation to a taxable person and an accounting period, see paragraph 50.
7 (1) A taxable person’s net takings in an accounting period for a relevant machine are—
(a) the takings, less
(b) the payouts.
(2) The takings are the charges that become due at any material time from players for playing dutiable machine games on that machine (irrespective of when the games are played or the prizes are paid out).
(3) The payouts are the prizes (whether cash or non-cash) that are paid out at any material time to players as a result of playing dutiable machine games on that machine (irrespective of when the games are played or the charges become due).
(4) Sub-paragraph (3) does not include prizes paid out to—
(a) a person who is a registrable person in respect of the premises where the machine is located,
(b) a representative or employee of such a person at those premises, or
(c) a person acting for or at the direction of a person within paragraph (a).
(5) Sub-paragraph (3) does not include prizes paid out unlawfully (for example, a prize paid out to a child or young person in breach of a condition attached to an operating licence by virtue of section 83(1)(b) of the Gambling Act 2005).
(6) If it is not reasonably practicable to attribute charges and prizes to dutiable machine games or to apportion them between dutiable machine games and other games or other activities, any attribution or apportionment is to be done on a just and reasonable basis.
(7) “Material time” means any time in the accounting period when the person is liable for machine games duty in respect of the machine.
(8) The Commissioners may by regulations make provision about the point in time at which a charge is taken to become due, or a prize is taken to be paid out, for the purposes of this paragraph.
(9) If a machine game is played in pursuance of an offer that permits the player to pay nothing or less than the charge that the player would be required to pay without the offer, the charge (if any) is treated as becoming due when the player plays the game.
(10) A prize that is paid out using a system involving redemption tickets, points or anything similar is taken to be paid out when the prize is redeemed (rather than when the means of redemption is issued or communicated to the winner).
(11) Sub-paragraphs (9) and (10) do not limit the power in sub-paragraph (8).
8 (1) In calculating the takings and the payouts under paragraph 7, the following amounts are to be left out of account—
(a) amounts arising from playing dutiable machine games on a domestic occasion, and
(b) amounts arising in any other circumstances specified by the Treasury by order.
(2) The power in sub-paragraph (1)(b)—
(a) may be exercised generally or in relation to particular cases or kinds of case, and
(b) may include provision requiring specified conditions to be met before amounts are left out of account.
9 (1) The standard rate is 20%.
(2) The lower rate is 5%.
(3) If a rate changes during an accounting period—
(a) the old rate is to be applied to the person’s total net takings in the part of the period before the change, and
(b) the new rate is to be applied to the person’s total net takings in the part of the period after the change.
(4) If it is not possible to identify for the purposes of sub-paragraph (3) the part of the period to which an amount relates, it is to be apportioned on a just and reasonable basis.
10 (1) If the calculation of the amount of machine games duty for which a taxable person is liable for an accounting period results in a negative amount (“amount X”)—
(a) the amount of machine games duty for which that person is liable for that period is treated as nil, and
(b) the amount of duty for which that person is liable for the next accounting period is to be reduced by amount X.
(2) Sub-paragraph (1) applies to an accounting period whether or not amount X results wholly or partly from the previous application of that sub-paragraph.
(3) Subject to any reduction required by sub-paragraph (1)(b), the person is not entitled to any repayment or refund of machine games duty in respect of amount X.
11 (1) A person is liable for machine games duty in respect of a machine at any time if at the time—
(a) the person is responsible for the premises where the machine is located (see paragraph 12),
(b) the machine is available there for use by others for playing dutiable machine games on it, and
(c) the machine is not an excluded dual-use machine (see paragraph 13).
(2) If, at any time, there is more than one person who satisfies sub-paragraph (1)(a) to (c) in respect of a machine, each of them is jointly and severally liable for the duty.
(3) A person who is liable for machine games duty in accordance with this paragraph is referred to as a “taxable person”.
12 (1) This paragraph sets out who is “responsible” for premises for the purposes of paragraph 11.
(2) If a person is registered in respect of premises, that person is responsible for the premises.
(3) A person is “registered” at any time in respect of premises if at the time there is an entry in force for that person in the MGD register in respect of those premises.
(4) If no-one is registered in respect of premises, any person who is a registrable person in respect of the premises or a representative of such a person is responsible for the premises.
(5) Paragraphs 20 to 24 make further provision about registration and registrable persons.
13 (1) A machine is an “excluded dual-use machine” if—
(a) it is capable of being used both for playing machine games and for some other purpose that is not related to playing machine games, and
(b) condition A or B is met.
(2) Condition A is that the machine is not designed, adapted or presented in such a way as to—
(a) facilitate its use for playing dutiable machine games, or
(b) draw attention to the possibility of its use for playing such games.
(3) Condition B is that the machine is so designed, adapted or presented but the person mentioned in paragraph 11(1) does not know, and could not reasonably be expected to know, that it is.
(4) References to a machine being “adapted” include a machine to which anything has been done, including the installation of computer software on it.
(5) The Commissioners may by order specify criteria to be taken into account in deciding whether a machine falls within the definition in sub-paragraph (1).
(6) The Treasury may by order amend this paragraph.
14 (1) An accounting period for machine games duty is a period of 3 consecutive months.
(2) The first day of an accounting period is such day as HMRC may direct.
(3) A direction under sub-paragraph (2) may apply generally or only to a particular case or class of case.
(4) HMRC may agree with a registered person to make either or both of the following changes for the purposes of that person’s liability to machine games duty—
(a) to treat specified periods (whether longer or shorter than 3 months) as accounting periods,
(b) to begin accounting periods on days other than those applying by virtue of sub-paragraph (2).
(5) HMRC may by direction make transitional arrangements for periods (whether of 3 months or otherwise) to be treated as accounting periods where—
(a) a person becomes or ceases to be registered, or
(b) an agreement under sub-paragraph (4) begins or ends.
(6) If there is reason to believe that a person who is liable for machine games duty may not discharge that liability as it falls due from time to time—
(a) HMRC may by direction specify shorter periods to be treated as accounting periods for the purposes of that person’s liability to machine games duty,
(b) any such direction continues to have effect until it is withdrawn by HMRC (unless otherwise specified in the direction), and