(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
5paragraph, 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) 10if 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) 15in 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
20paragraphs.

(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) 25None 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) 30section 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) 35is 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) 40“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
45Ireland.”

(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 33A
below, an operator of a chargeable aircraft does not become liable to
be registered under this section just because the aircraft is used for
5the 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
10passengers 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 15After section 33 insert—

“33A Registration of Northern Ireland long haul aircraft operators

(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
20operator 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) 25that 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
30notice 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
35such 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
40above”.

13 After section 41 insert—

“41A Northern Ireland long haul rates of duty: disclosure of information

(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
5Act 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) 10In 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) 15sums 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)”
20insert “or 33A(4)”.

Part 4 Other provision

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)
25substitute—

“(3) Sections 29 and 29A below set out how to determine if an aircraft is
a chargeable aircraft for the purposes of this Chapter.”

(1) Section 29 (chargeable aircraft) is amended as follows.

(2) For subsection (1) substitute—

“(1) 30For 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) 35it 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—

“29A 40Chargeable aircraft: exceptions

(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
5(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) 10An 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 15In 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
20rate 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
25the 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) 30This 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
35with 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) 40there 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) 45the 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) 5if 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
10the 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
15equal to twice the rate set for the purposes of subsection (5)(b)
is to apply instead.”

(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
  20carried on the aircraft other than—

  (a)

  a member of the flight crew,

  (b)

  a cabin attendant, or

  (c)

  a person who is not carried for reward and who
  satisfies such other requirements as may be
  25prescribed.”

(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
30family 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

SCHEDULE 24 Machine games duty

35Part 1 Imposition of duty

The duty

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.

Dutiable machine games

(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) 5the 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) 10“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) 15The 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
20in 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
25for 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.

(1) 30A 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) 35it 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
401981) 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) 5whether 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).

Types of machine

(1) 10Machines 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) 15the 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
20order.

How the duty is charged

(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) 25applying 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) 30This 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
35determined 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
40of 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.

Net takings per machine

(1) A taxable person’s net takings in an accounting period for a relevant
5machine 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
10when 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) 15Sub-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
20(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) 25If 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
30liable 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
35to 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
40(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).

(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) 5The 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.

10The rates

(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
15part 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
20reasonable basis.

Negative amounts of duty

(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) 25the 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
30results 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.

35Who is liable

(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) 40the 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
5paragraph is referred to as a “taxable person”.

Responsible for premises

(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
10the 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
15person 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.

Excluded dual-use machines

(1) 20A 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) 25Condition 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
30person 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) 35The 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.

Accounting periods

(1) An accounting period for machine games duty is a period of 3 consecutive
40months.

(2) The first day of an accounting period is such day as HMRC may direct.