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Finance (No. 4) BillPage 550

the reference in sub-paragraph (2)(b) to 12 months is to be read as a reference
to 6 months.

(5) Section 27 of BGDA 1981 (offences by bodies corporate) has effect for the
purposes of any offence under this paragraph as it has effect for the
5purposes of the offences mentioned in that section.

Protection of officers

38 Section 31 of BGDA 1981 applies in relation to machine games duty as it
applies in relation to remote gaming duty.

Orders and regulations

(1) 10This paragraph applies to orders and regulations under this Part of this
Schedule.

(2) Orders and regulations—

(a) may make provision that applies generally or only for specified
purposes,

(b) 15may make different provision for different purposes, and

(c) may include transitional provision and savings.

(3) Regulations may confer a discretion on HMRC.

(4) Orders and regulations are to be made by statutory instrument.

(5) For the purposes of making an order under paragraph 8(1)(b)—

(a) 20the statutory instrument containing the order must be laid before the
House of Commons, and

(b) the order ceases to have effect at the end of the period of 28 days
beginning with the day on which it was made unless, during that
period, it is approved by a resolution of the House of Commons.

(6) 25In reckoning the 28-day period, no account is to be taken of any time during
which—

(a) Parliament is dissolved or prorogued, or

(b) the House of Commons is adjourned for more than 4 days.

(7) An order ceasing to have effect by virtue of sub-paragraph (5)(b) does not
30affect—

(a) anything previously done under the order, or

(b) the making of a new order.

(8) A statutory instrument containing an order under paragraph 13(6) or 22(3)
may not be made unless a draft of the instrument has been laid before and
35approved by a resolution of the House of Commons.

(9) Subject to sub-paragraphs (5) and (8), a statutory instrument containing an
order or regulations is subject to annulment in pursuance of a resolution of
the House of Commons.

Transitional provision

(1) 40The Commissioners may by notice direct that regulations under paragraph
24 (procedure for registration, de-registration etc) are to apply in relation to

Finance (No. 4) BillPage 551

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
5relevant machine is located, the first accounting period is to be the period
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
10under paragraph 14(4).

Consequential amendments

(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) 15the provisions of Part 1 of Schedule 24 to the Finance Act
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) 20being responsible for premises where relevant
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)”.

(1) 25For section 118BC of that Act (inspection powers: gaming duty) substitute—

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
30to take place on the premises, or

(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
35premises and inspect—

(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
40particular part of premises if—

(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) BillPage 552

(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) 5to carry out any other operation that may be necessary to
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) 10in relation to gaming duty, a person who is engaging, or
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
15or is about to become liable to machine games duty or whom
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
20officer reasonably suspects of having been or of being
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
25of which a person is, has been or may become liable to
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
30Finance Act 1997 applies, and

(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
35section 118B” substitute “, 118B or 118BC(4)”.

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

(1) Section 26H of BGDA 1981 (exemptions from remote gaming duty) is
amended as follows.

(2) 40After subsection (2A) insert—

(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 45In Schedule A1 to BGDA 1981 (betting duties: double taxation relief), in
paragraph 7, after paragraph (c) insert—

(ca) machine games duty,.

Finance (No. 4) BillPage 553

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
5“1997” insert “or Part 1 of Schedule 24 to the Finance Act 2012”.

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
10chargeable but for an express exception, or

(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) 15at the end of sub-paragraph (vii) insert and

(viii) machine games duty;.

Interpretation

50 In this Part of this Schedule—

(1) 25This Part of this Schedule is to be read in accordance with this paragraph.

(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) 30A reference to the charge (or the lowest or highest charge) payable for
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
35machine game or to play it at a reduced rate (even if the charge is
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) 40A reference to a prize (or the maximum amount of cash) that can be won
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
45of the service, in money’s worth.

(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) BillPage 555

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

5Amendment of BGDA 1981

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) 10Schedules 4 and 4A.

(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) 15In section 31 (protection of officers), for “remote gaming duty or the duty on
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”.

20Amendment of other enactments

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
25excise wrongdoing), in the Table in paragraph 1, omit the entry relating to
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).

30Transitional provision and savings

(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) 35the amount of duty actually paid on the licence before the go-live
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—

40 Step 1

Finance (No. 4) BillPage 556

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
5immediately before the go-live date. The day immediately following the end
of that period of complete months is referred to as “day X”.

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
10day before the go-live date. The duty payable for each such day in that
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
15made 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),

20the 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—

(a) 25the 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).

(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
35may 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
40immediately 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
45may require.

Finance (No. 4) BillPage 557

(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
5sum of the amounts payable for each day in that period, each such amount
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
10notice published for the purposes of this paragraph) to an amount of duty
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
15where no application is made under this paragraph or an application is not
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
20an application had been made for a licence under this paragraph.

(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
25one or more whole months were omitted, and

(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
30machine licences for a period of 12 months has effect in relation to a final
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
35the manner described in paragraph 60(6).

(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.

(1) 40The enactments repealed by this Part of this Schedule continue to have effect
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) 45Without prejudice to the generality of sub-paragraph (2), paragraph 4 of
Schedule 4A to BGDA 1981 (assessment of amount equivalent to duty) is to

Finance (No. 4) BillPage 558

be read as if the reference in sub-paragraph (3) to the due date were a
reference to the day before the go-live date.

Part 3 VAT exemption

5Amendment of VATA 1994

63 For section 23 of VATA 1994 substitute—

23 Value of supplies involving relevant machine games

(1) If a person plays a relevant machine game, then for the purposes of
VAT the amount paid by the person is to be treated as consideration
10for a supply of services to that person.

(2) “Relevant machine game” is defined in section 23A.

(3) The value to be taken as the value of supplies made by a person (“the
supplier”) in the circumstances mentioned in subsection (1) in any
period is to be determined as if the consideration for the supplies
15were reduced by an amount equal to X.

(4) X is the amount (if any) paid out in that period by way of winnings
in respect of relevant machine games made available by the supplier
(whether the games were played in the same period or an earlier
one).

(5) 20X does not include any winnings paid out to the supplier or a person
acting on the supplier’s behalf.

(6) Inserting a token into a machine on which a relevant machine game
is played is to be treated for the purposes of subsection (1) as the
payment of an amount equal to that for which the token can be
25obtained.

(7) Providing a specified kind of token by way of winnings is to be
treated for the purposes of subsection (4) as the payment out of an
amount by way of winnings equal to the value of the token.

(8) A specified kind of token is—

(a) 30a token that can be inserted into the same machine to enable
games to be played on the machine, or

(b) a token that is not of such a kind but can be exchanged for
money.

(9) The value of a specified kind of token is—

(a) 35for a token within subsection (8)(a), an amount equal to that
for which the token can be obtained, and

(b) for a token within subsection (8)(b), an amount equal to that
for which the token can be exchanged.

(10) If it is not reasonably practicable to attribute payments and winnings
40to relevant machine games or to apportion them between relevant
machine games and other games or other activities, any attribution
or apportionment is to be done on a just and reasonable basis.

Finance (No. 4) BillPage 559

(11) For the purposes of this section, 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
5represent the actions of other participants in the game.

23A Meaning of “relevant machine game”

(1) A “relevant machine game” is a game (whether of skill or chance or
both) that—

(a) is played on a machine for a prize, and

(b) 10is not excluded by subsection (2).

(2) A game is excluded by this subsection if—

(a) takings and payouts in respect of it are taken into account in
determining any charge to machine games duty,

(b) it involves betting on future real events,

(c) 15bingo duty is charged on the playing of it or would be so
charged but for paragraphs 1 to 5 of Schedule 3 to the Betting
and Gaming Duties Act 1981 (exemptions from bingo duty),

(d) lottery duty is charged on the taking of a ticket or chance in it
or would be so charged but for an express exception,

(e) 20it is a real game of chance and playing it amounts to dutiable
gaming for the purposes of section 10 of the Finance Act 1997
or would do so but for subsection (3), (3B) or (4) of that
section, or

(f) playing it amounts to remote gaming within the meaning of
25section 26A of the Betting and Gaming Duties Act 1981
(remote gaming duty: interpretation).

(3) In this section—

(4) The Treasury may by order amend this section.

(1) In Part 2 of Schedule 9 to that Act (exemptions: the groups), the provisions
of Group 4 are amended as follows.

(2) After Item 1 insert—

1A 40The provision of any facilities for the playing of dutiable machine
games (as defined in Part 1 of Schedule 24 to the Finance Act 2012)
but only to the extent that—

(a) the facilities are used to play such games, and

(b) the takings and payouts in respect of those games are taken
45into account in determining the charge to machine games
duty.

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Contents page 450-459 460-469 470-479 480-489 490-499 500-509 510-519 520-529 530-539 540-549 550-559 560-569 570-579 580-589 590-599 600-609 610-619 620-629 630-639 640-649 650-659 Last page