Finance Bill (HC Bill 49)

(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) 5an 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
10machine games duty,

(b) any such direction continues to have effect until it is withdrawn by
HMRC (unless otherwise specified in the direction), and

(c) withdrawal of a direction does not prevent the giving of further
directions in respect of the same person.

15Valuing prizes

15 (1) This paragraph applies in valuing prizes for the purposes of this Schedule
(including in determining the maximum amount of cash that can be won
from playing a machine game).

(2) The value of a prize includes any portion that—

(a) 20represents a refund of the charge payable for playing the game, or

(b) is calculated by reference to the amount of any such charge.

(3) The value of a prize in the form of something that is reasonably considered
to equate to money is equal to the amount of money to which the thing is
reasonably considered to equate.

(4) 25For a prize in the form of a currency other than sterling or in the form of
something that is reasonably considered to equate to such a currency—

(a) the value of the prize is, in relation to any day, the sterling equivalent
of that currency determined by reference to the London closing rate
for that currency for the previous day, and

(b) 30for the purposes of paragraph 7(3), the day in relation to which the
value is assessed is the last day of the relevant accounting period.

(5) The value of a prize other than cash depends on the person (“A”) from whom
the person paying out the prize (“B”) obtained it—

(a) if A was not connected with B when B obtained the prize from A, the
35value is the cost to B of obtaining the prize from A,

(b) if A was connected with B when B obtained the prize from A, the
value is the smaller of—

(i) the cost to B of obtaining the prize from A, and

(ii) the amount that it would have cost B, at the time B obtained
40the prize, to obtain it from a person not connected with B.

(6) Whether A is connected with B is to be determined in accordance with
section 1122 of CTA 2010.

(7) If the value of a prize other than cash cannot reasonably be determined in
accordance with sub-paragraph (5), the value of the prize is such amount as
45is just and reasonable.

(8) For the purposes of sub-paragraph (5), an amount paid by way of value
added tax on the acquisition of a thing is to be treated as part of its cost
(whether or not the amount is taken into account for the purpose of a credit
or refund).

(9) 5The Commissioners may by regulations make further provision about the
way in which prizes are to be valued for the purposes of this Schedule.

(10) This paragraph applies to a part of a prize as it applies to a whole prize, and
references to a prize are to be read accordingly.

Valuing charges

16 (1) 10This paragraph applies in determining for the purposes of this Schedule the
amount of a charge (or the highest or lowest charge) payable or due for
playing a machine game.

(2) If the amount of a charge in money’s worth cannot be determined, it is
assumed to be such amount as is just and reasonable.

(3) 15If a composite charge is payable or due for the opportunity to play a machine
game more than once, the amount of the charge payable or due for each
individual go is to be determined on a just and reasonable basis.

(4) If a composite charge is payable or due for the opportunity to play a machine
game and for something else, the amount of the charge payable or due for
20playing the game is to be determined on a just and reasonable basis.

(5) The Commissioners may by regulations make further provision about the
way in which the amount of charges is to be determined for the purposes of
this Schedule.

(6) Sub-paragraph (7) applies if—

(a) 25a dutiable 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 have been required to pay without the offer,

(b) the offer was made available to the player by way of winnings from
an activity in respect of which another duty of excise or value added
30tax is charged, and

(c) the value of the offer is deductible in calculating the amount of that
other duty or value added tax payable in respect of that activity.

(7) The amount of the charge due from the player for playing the dutiable
machine game is taken for the purposes of paragraph 7 to be the amount that
35the player would have been required to pay without the offer.

(8) Regulations under sub-paragraph (5) may include provision extending or
modifying the circumstances in which sub-paragraph (7) applies.

Collection and management

17 The Commissioners are responsible for the collection and management of
40machine games duty.

Returns

18 (1) The Commissioners may make regulations requiring registrable persons to
make returns to HMRC in respect of relevant machines.

(2) Regulations under this paragraph may in particular make provision about—

(a) liability to make a return,

(b) timing,

(c) form,

(d) 5content,

(e) method of making (including provision requiring returns to be made
electronically),

(f) declarations,

(g) authentication, and

(h) 10when a return is to be treated as made.

Assessment and payment

19 (1) The Commissioners may make regulations about payment of machine
games duty.

(2) The regulations may in particular make provision about—

(a) 15timing,

(b) instalments,

(c) methods of payment (including provision requiring payments to be
made electronically),

(d) when payment is to be treated as made, and

(e) 20the process and effect of assessments by HMRC of amounts due.

(3) Subject to regulations under this paragraph, section 12 of FA 1994
(assessment) applies in relation to liability to pay machine games duty.

Registration

20 (1) The Commissioners must maintain a register of those responsible for
25premises where relevant machines are located.

(2) The register is to be known as the MGD register.

(3) A person must not make a relevant machine available for use by others for
playing dutiable machine games on it unless a registrable person (whether
that person or someone else) is registered in respect of the premises where
30the machine is located.

(4) Paragraph 21 identifies who is a registrable person in respect of premises.

(5) This paragraph does not apply in relation to a relevant machine if it is
reasonable to expect that the only takings and the only payouts in respect of
the machine would be amounts that would be left out of account by virtue
35of paragraph 8.

Registrable persons

21 (1) If a person holds a relevant licence or permit in respect of premises, that
person is a registrable person in respect of those premises.

(2) But if the premises are leased to a person (“T”) for the purposes of an activity
40for which an alcohol licence is required and the alcohol licence in respect of
the premises is held by someone else, T (and not the licence-holder) is a
registrable person in respect of those premises.

(3) If the premises are a stall at a travelling fair, each of the following is a
registrable person in respect of the premises—

(a) the holder of the stall, and

(b) the person in charge of the fair.

(4) 5For premises not falling within any of the preceding sub-paragraphs, each
person listed in sub-paragraph (5) is a registrable person in respect of the
premises.

(5) The persons are—

(a) a person required to hold a relevant licence or permit in respect of the
10premises,

(b) an owner, lessee or occupier of the premises,

(c) a person who is responsible to the owner, lessee or occupier for the
management of the premises,

(d) a person who is responsible for controlling the use of machines that
15are made available on the premises for use by others for playing
dutiable machine games on them, and

(e) a person who is responsible for controlling the admission of persons
to the premises or for providing persons resorting to the premises
with goods or services.

(6) 20“Relevant licence or permit” is defined in paragraph 22.

(7) “Alcohol licence” means—

(a) a premises licence issued under Part 3 of the Licensing Act 2003 that
authorises the supply of alcohol for consumption on the licensed
premises,

(b) 25a premises licence issued under Part 3 of the Licensing (Scotland) Act
2005, except where such a licence only applies to the sale of alcohol
for consumption off the premises, and

(c) a licence issued under the Licensing (Northern Ireland) Order 1996
(S.I. 1996/3158 (N.I. 22)), except where such a licence only applies to
30the sale of intoxicating liquor by retail for consumption off the
premises.

(8) “Travelling fair” means a fair—

(a) consisting wholly or principally of the provision of amusements,

(b) provided wholly or principally by persons who travel from place to
35place for the purpose of providing such fairs, and

(c) held at a place no part of which has been used for the provision of
such a fair on more than 27 days in the same calendar year.

22 (1) A “relevant licence or permit” is—

(a) a licence issued under Part 8 of the Gambling Act 2005,

(b) 40a family entertainment centre gaming machine permit as defined in
section 247 of that Act,

(c) a club gaming permit as defined in section 271 of that Act,

(d) a club machine permit as defined in section 273 of that Act,

(e) a prize gaming permit as defined in section 289 of that Act,

(f) 45an on-premises alcohol licence or a relevant Scottish licence as
defined, in each case, in section 277 of that Act but only if a licence or
permit listed above is not held in respect of the same premises,

(g) a club premises certificate granted under Part 4 of the Licensing Act
2003 but only if a licence or permit listed above is not held in respect
of the same premises,

(h) a certificate of registration within the meaning of the Betting,
5Gaming Lotteries and Amusements (Northern Ireland) Order 1985
(S.I. 1985/1204 (N.I. 11)),

(i) a bookmaking office licence within the meaning of that Order,

(j) a bingo club licence within the meaning of that Order,

(k) an amusement permit within the meaning of that Order,

(l) 10a certificate of registration within the meaning of the Registration of
Clubs (Northern Ireland) Order 1996 (S.I. 1996/3159 (N.I. 23)), or

(m) a licence issued under the Licensing (Northern Ireland) Order 1996
(S.I. 1996/3158 (N.I. 22)) but only if a licence, permit or certificate
listed above is not held in respect of the same premises.

(2) 15In sub-paragraph (1), “listed above” means listed in any of the preceding
provisions of that sub-paragraph.

(3) The Treasury may by order amend this paragraph to add to, vary or restrict
the list in sub-paragraph (1).

Compulsory registration

23 (1) 20Sub-paragraph (2) applies if—

(a) it appears to HMRC that a relevant machine is being made available
by anyone at premises for use by others for playing dutiable machine
games on it, and

(b) no-one is registered in respect of the premises.

(2) 25HMRC may give a notice under this paragraph to any person they believe to
be a registrable person in respect of the premises.

(3) The notice is referred to as a “registration notice”.

(4) A person to whom a registration notice is given may appeal to an appeal
tribunal against the notice.

(5) 30The appeal may be made on either or both of the following grounds—

(a) that the person is not a registrable person in respect of the premises,

(b) that relevant machines are not being made available at the premises
for use by others for playing dutiable machine games on them.

(6) The appeal must be made within the period of 30 days beginning with the
35date of the registration notice.

(7) If—

(a) no appeal is made within that period, or

(b) an appeal made within that period is dismissed or withdrawn,

HMRC may proceed to register the person in respect of the premises (unless
40another person has since become registered in respect of them).

(8) Registration under this paragraph is treated as made with effect from the
date of the registration notice.

Procedure for registration, de-registration etc

24 (1) The Commissioners may make regulations about registration.

(2) Regulations under this paragraph may in particular make provision about—

(a) the procedure for applying for registration (including provision
5requiring applications to be made electronically),

(b) the timing of applications,

(c) the information to be provided,

(d) the giving of registration notices and the making of appeals against
them,

(e) 10the procedure for compulsory registration under paragraph 23,

(f) notification of changes to the register,

(g) de-registration, and

(h) re-registration after a person ceases to be registered.

(3) The regulations may permit HMRC to make registration, or continued
15registration, subject to conditions.

(4) Those conditions may in particular require—

(a) the provision of security for the payment of machine games duty,
and

(b) (in the case of a foreign person) the appointment of a United
20Kingdom representative with responsibility for discharging liability
to machine games duty.

(5) In sub-paragraph (4) “foreign person” means a person who—

(a) in the case of an individual, is not usually resident in the United
Kingdom,

(b) 25in the case of a body corporate, does not have an established place of
business in the United Kingdom, and

(c) in any other case, does not include an individual who is usually
resident in the United Kingdom.

(6) The regulations may include provision for the registration of groups of
30persons; and may provide for the modification of the provisions of this Part
of this Schedule in their application to groups.

(7) The modifications may, for example, include a modification ensuring that,
where a representative member of a group is registered in place of the
members, each member will be jointly and severally liable for the duty
35payable by the representative member on behalf of the group.

Publication of register

25 (1) The MGD register is to contain such details of those who are entered on the
register and of the premises in respect of which they are registered as the
Commissioners think fit.

(2) 40The Commissioners may publish the register (or a part of it).

(3) If they choose not to publish it or they choose to publish only a part of it, the
Commissioners must nonetheless make arrangements for the provision of a
copy of an entry in the register (or the unpublished part of it) to a member
of the public on request.

(4) But the Commissioners may refuse a request under sub-paragraph (3) if the
person making the request does not pay a fee specified by the
Commissioners.

(5) The fee must not exceed the reasonable cost (including any indirect cost) of
5meeting the request.

Profit-sharers

26 (1) Sub-paragraph (2) applies if—

(a) it appears to HMRC that machine games duty may be chargeable in
respect of a machine,

(b) 10no-one is registered in respect of the premises where the machine is
located, and

(c) either—

(i) HMRC do not know the identity of any of those responsible
for the premises (see paragraph 12), or

(ii) 15HMRC do know the identity of one or more such persons but
none of them is in the United Kingdom.

(2) HMRC may give a notice under this paragraph to any person they believe to
be beneficially entitled to a share of the machine’s takings.

(3) The notice must inform the person to whom it is given (“P”) that P will
20become liable to pay a share of the duty in accordance with this paragraph
unless, within the specified period—

(a) P provides HMRC with sufficient information to identify a person in
the United Kingdom who is responsible for the premises, or

(b) P satisfies HMRC that, when P became beneficially entitled to a share
25of the machine’s takings, P took all reasonable steps to ascertain that
a registrable person was registered in respect of the premises.

(4) The specified period is—

(a) such period of 30 days or more as is specified in the notice, or

(b) such other period as may be agreed between HMRC and P.

(5) 30If P fails to satisfy sub-paragraph (3)(a) or (b) within the specified period,
HMRC may assess to the best of their judgement an amount equal to P’s
share of the machine games duty that would have been due in respect of the
machine for an accounting period on the assumptions set out in sub-
paragraph (6).

(6) 35The assumptions are—

(a) that P had been liable for machine games duty in respect of the
machine in the accounting period in accordance with paragraph 11,

(b) that the machine had been the only machine in respect of which P
was so liable, and

(c) 40that the dutiable machine games in respect of which P is beneficially
entitled to a share of the takings had been the only dutiable machine
games played on the machine.

(7) P’s share is a percentage equal to the share of the machine’s takings to which
P is beneficially entitled.

(8) 45An assessment under this paragraph may relate to more than one machine,
more than one set of premises and more than one accounting period.

(9) But it may not relate to a period that began more than 4 years before the date
of the assessment.

(10) An amount assessed under this paragraph is deemed to be an amount of
machine games duty assessed under section 12 of FA 1994 and due from P
5in accordance with regulations under paragraph 19 of this Schedule.

(11) P is not entitled to any repayment from HMRC of an amount assessed under
this paragraph if HMRC subsequently identify a person responsible for the
premises.

(12) But if, after P has paid such an amount, HMRC make an assessment under
10section 12 of FA 1994 of an amount of machine games duty due from another
person in respect of the same takings from the same machine for the same
accounting period, account must be taken in that assessment of the amount
paid by P.

Reviews and appeals

27 (1) 15The decisions mentioned in sub-paragraph (2) are to be treated as if they
were listed in subsection (2) of section 13A of FA 1994 (customs and excise
reviews and appeals: meaning of “relevant decision”) and, accordingly, as if
they were relevant decisions for the purposes mentioned in subsection (1) of
that section.

(2) 20The decisions are—

(a) a decision of HMRC to refuse a request for an agreement under
paragraph 14,

(b) a decision to give a direction under that paragraph,

(c) a decision not to give such a direction,

(d) 25a decision of HMRC under regulations by virtue of paragraph 24(2),

(e) a decision of HMRC about security by virtue of paragraph 24(4)(a),
and

(f) a decision of HMRC about the appointment of a United Kingdom
representative by virtue of paragraph 24(4)(b).

30Interest

28 (1) This paragraph applies if an order is made under section 104(3) of FA 2009
appointing a day on which sections 101 to 103 of that Act are to come into
force for the purposes of machine games duty.

(2) Interest charged under section 101 of that Act on an amount of machine
35games duty (or an amount enforceable as if it were machine games duty)
may be enforced as if it were an amount of machine games duty payable by
the person liable for the amount on which the interest is charged.

Penalties and enforcement

29 In Schedule 24 to FA 2007 (penalties for errors), in the Table in paragraph 1,
40after the entry relating to remote gaming duty insert—

30 45In Schedule 41 to FA 2008 (penalties: failure to notify and certain VAT and
excise wrongdoing), in the Table in paragraph 1, after the entry relating to
remote gaming duty insert—

31 In Schedule 55 to FA 2009 (penalty for failure to make returns etc), in the
Table in paragraph 1, after item 28 insert—

32 In that Schedule, in each of the following provisions, for “28” substitute
“29”—

(a) paragraph 2(1)(b),

(b) paragraph 13A(1), and

(c) 65paragraph 13F(1).

33 In Schedule 56 to FA 2009 (penalty for failure to make payments on time), in
the Table in paragraph 1, after item 11M insert—

34 85In that Schedule, in each of the following provisions, for “11M” substitute
“11N”—

(a) items 17A, 23 and 24 of the Table in paragraph 1,

(b) paragraph 2(c),

(c) paragraph 3(1)(b),

(d) 90paragraph 8A(1), and

(e) paragraph 8F(1).

35 (1) Contravention of a provision mentioned in sub-paragraph (2) attracts a
penalty under section 9 of FA 1994 (penalties) and also attracts daily
penalties under that section.

(2) 95The provisions are—

(a) any provision of regulations made under paragraph 18,

(b) any provision of regulations made under paragraph 19,

(c) paragraph 20(3), and

(d) any provision of regulations made under paragraph 24.

Forfeiture

36 (1) A machine is liable to forfeiture if—

(a) an officer of Revenue and Customs finds it on any premises,

(b) the officer is satisfied that it is being, has been or is about to be made
5available on the premises for use by others for playing dutiable
machine games on it, and

(c) condition A or B is met.

(2) Condition A is that—

(a) no-one is registered in respect of the premises, and

(b) 10there is a serious risk that any machine games duty chargeable in
respect of the machine would not be paid.

(3) Condition B is that the officer is satisfied that an amount of machine games
duty has become due and payable in respect of the machine, but has not been
paid.

15Offences

37 (1) A person commits an offence if the person is knowingly concerned in, or in
the taking of steps with a view to, the fraudulent evasion (by that person or
any other person) of any machine games duty.

(2) A person guilty of an offence under this paragraph is liable—

(a) 20on conviction on indictment, to imprisonment for a term not
exceeding 7 years or a fine, or both;

(b) on summary conviction, to imprisonment for a term not exceeding 12
months or a fine not exceeding the maximum amount, or both.

(3) The maximum amount is the greater of—

(a) 25the statutory maximum, and

(b) three times the duty or other amount that is unpaid or the payment
of which is sought to be avoided.

(4) In the application of this paragraph—

(a) in England and Wales, in relation to an offence committed before the
30commencement of section 154(1) of the Criminal Justice Act 2003, or

(b) in Northern Ireland,

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
35purposes of any offence under this paragraph as it has effect for the
purposes 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.

40Orders and regulations

39 (1) This 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) may make different provision for different purposes, and

(c) 5may 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) the statutory instrument containing the order must be laid before the
10House 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) In reckoning the 28-day period, no account is to be taken of any time during
15which—

(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
affect—

(a) 20anything 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
approved by a resolution of the House of Commons.

(9) 25Subject 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

40 (1) The Commissioners may by notice direct that regulations under paragraph
3024 (procedure for registration, de-registration etc) are to apply in relation to
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
35relevant 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
40under paragraph 14(4).

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