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Finance (No. 2) BillPage 110

(c) the amount of the provider’s profits for the period in respect of retained
prizes (calculated in accordance with section 151).

(5) Where the calculation for an accounting period under subsection (4) produces
a negative amount—

(a) 5the gaming provider’s profits on remote gaming for the accounting
period are treated as nil, and

(b) the amount produced by the calculation may be carried forward in
reduction of the gaming provider’s profits on remote gaming for one or
more later accounting periods.

149 10Profits on pooled prize gaming

(1) Take the following steps to calculate the amount of a gaming provider’s profits
for an accounting period in respect of pooled prize gaming.

Step 1

Take the aggregate of the relevant gaming payments made to the provider in
15the accounting period and deduct the aggregate of any of those payments that
are assigned by or on behalf of the provider to gaming prize funds during the
period.

Step 2

If in the accounting period any amount contained in a gaming prize fund to
20which relevant gaming payments have been assigned by or on behalf of the
provider is used otherwise than to provide prizes to participators in pooled
prize gaming, multiply each amount so used in the accounting period by the
relevant proportion that applies in relation to it.

Step 3

25Add the aggregate of the amounts calculated under Step 2 to the amount
calculated under Step 1.

Step 4

If in the accounting period any top-up payment is assigned to a gaming prize
fund by the gaming provider, multiply the amount of each top-up payment so
30assigned in the accounting period by the appropriate proportion that applies
in relation to it.

Step 5

Subtract the aggregate of the amounts calculated under Step 4 from the amount
calculated under Step 3.

35Subtract the aggregate of the amounts calculated under Step 4 from the amount
calculated under Step 3.

(2) For the purposes of Step 2 the relevant proportion, in relation to any amount
which is used otherwise than to provide prizes, is—

(a) if the amount relates to a specific game of chance, the proportion of that
40amount that consists of relevant gaming payments made to the
provider in respect of that game,

(b) if the amount does not relate to a specific game of chance but relates to
amounts assigned to the fund during a specific period, the proportion
of that amount that consists of relevant gaming payments assigned to
45the fund by or on behalf of the provider during that period, and

(c) in any other case, the proportion of the total amount contained in the
fund immediately before the amount is so used which consists of
relevant gaming payments assigned to the fund by or on behalf of the
provider.

(3) 50For the purposes of Step 4—

Finance (No. 2) BillPage 111

(a) a top-up payment is assigned to a gaming prize fund if the gaming
provider assigns an amount (other than a gaming payment) to the fund
to satisfy a guarantee given by the gaming provider that prizes of a
specified minimum amount will be available in respect of gaming
5under arrangements made with the provider, and

(b) the appropriate proportion, in relation to such a top-up payment, is the
proportion determined in accordance with a notice published by the
Commissioners.

(4) A notice under subsection (3)(b) may provide for top-up payments to be
10ignored for the purposes of Step 4 in a specified case or class of cases.

(5) In this section “relevant gaming payment” means a gaming payment in respect
of pooled prize gaming.

150 Profits on ordinary gaming

(1) To calculate the amount of a gaming provider’s profits for an accounting
15period in respect of ordinary gaming—

(a) take the aggregate of the gaming payments made to the provider in the
accounting period in respect of ordinary gaming, and

(b) subtract the amount of the provider’s expenditure for the period on
prizes in respect of such gaming.

(2) 20The amount of the gaming provider’s expenditure on prizes for an accounting
period in respect of ordinary gaming is the aggregate of the value of prizes
provided by or on behalf of the provider in that period which have been won
(at any time) by chargeable persons participating in ordinary gaming.

151 Profits on retained prizes

(1) 25The amount of a gaming provider’s profits for an accounting period in respect
of retained prizes is the aggregate of the amounts which cease to be qualifying
amounts during the accounting period.

(2) An amount is a qualifying amount for the purposes of this section if, as a result
of a person (“P”) being notified as mentioned in section 153(1), it has been taken
30into account in calculating the provider’s profits for any accounting period
under section 149 or 150.

(3) An amount ceases to be a qualifying amount for the purposes of this section if,
otherwise than being withdrawn by P as mentioned in section 153(1), P ceases
to be entitled to withdraw it.

(4) 35The Commissioners may by notice published by them direct that subsection (3)
is not to apply in a specified case or class of cases.

152 Gaming payments

(1) Where a chargeable person participates in remote gaming, the “gaming
payment” for the purposes of this Chapter is the aggregate of—

(a) 40any amount that entitles the person to participate in the gaming, and

(b) any other amount payable for or on account of or in connection with the
person’s participation in the gaming.

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(2) If the gaming payment is made to a person other than the gaming provider, it
is to be treated for the purposes of this Chapter as made to the gaming
provider.

(3) If the gaming payment has not been made at the time when the chargeable
5person begins to participate in the remote gaming to which it relates, it is to be
treated for the purposes of this Chapter as being made at that time.

(4) The Treasury may by regulations provide that where a person relies on an offer
which waives a gaming payment or permits payment of less than the amount
which would have been required to be paid without the offer, the person is to
10be treated for the purposes of this Chapter as having paid that amount.

153 Prizes

(1) A reference in section 149 or 150 to providing a prize to a person includes a
reference to crediting money to an account if the person is notified that—

(a) the money is being held in the account, and

(b) 15the person is entitled to withdraw it on demand.

(2) Where the account of a person participating in gaming is credited otherwise
than as described in subsection (1), the credit is to be treated for the purposes
of sections 149 and 150 as the provision of a prize; but the Commissioners may
direct that this subsection is not to apply in a specified case or class of cases.

(3) 20The return of all or part of a gaming payment is to be treated for the purposes
of sections 149 and 150 as the provision of a prize.

(4) Where a prize is obtained by or on behalf of a gaming provider from a person
not connected with the person who obtains the prize, the cost to the person
who obtains the prize is to be treated as the expenditure on the prize for the
25purposes of sections 149 and 150.

(5) Where a prize is a voucher which—

(a) may be used in place of money as whole or partial payment for benefits
of a specified kind obtained from a specified person,

(b) specifies an amount as the sum or maximum sum in place of which the
30voucher may be used, and

(c) does not fall within subsection (4),

the specified amount is the value of the voucher for the purposes of sections
149 and 150.

(6) Where a prize is a voucher (whether or not it falls within subsection (4)) no
35expenditure is to be treated as having been incurred on the prize for the
purposes of sections 149 and 150 if—

(a) it does not satisfy subsection (5)(a) and (b), or

(b) its use as described in subsection (5)(a) is subject to a specified
restriction, condition or limitation which may make the value of the
40voucher to the recipient significantly less than the amount mentioned
in subsection (5)(b).

(7) In the case of a prize which is neither money nor a voucher and which does not
fall within subsection (4), the expenditure on the prize for the purposes of
sections 149 and 150 is—

(a) 45the amount which the prize would cost if obtained from a person not
connected with the person who provides it, or

Finance (No. 2) BillPage 113

(b) where no amount can reasonably be determined in accordance with
paragraph (a), nil.

(8) For the purposes of this section—

(a) a reference to connection between two persons is to be construed in
5accordance with section 1122 of CTA 2010 (connected persons), and

(b) an amount paid by way of value added tax on the acquisition of a thing
is to be treated as part of its cost (irrespective of whether or not the
amount is taken into account for the purpose of a credit or refund).

154 Exemptions

(1) 10Remote gaming duty is not charged on participation by a chargeable person in
remote gaming if—

(a) the arrangements between the chargeable person and the gaming
provider are not entered into in or from the United Kingdom, and

(b) the facilities used to participate in the gaming are not capable of being
15used in or from the United Kingdom.

(2) Remote gaming duty is not charged on participation by a chargeable person in
remote gaming so far as the remote gaming—

(a) is charged with another gambling tax, or

(b) would be charged with another gambling tax but for an express
20exception.

(3) Subsection (2)(b)—

(a) does not prevent remote gaming duty being charged where the remote
gaming in question is the playing of bingo which is not licensed bingo
(as to the meaning of which terms see section 20C of BGDA 1981), and

(b) 25does not apply in cases where the other gambling tax is machine games
duty.

(4) In this section “gambling tax” means—

(a) machine games duty,

(b) bingo duty,

(c) 30gaming duty,

(d) general betting duty,

(e) lottery duty, and

(f) pool betting duty.

(5) The Treasury may by regulations—

(a) 35confer an exemption from remote gaming duty, or

(b) remove or vary (whether or not by textual amendment) an exemption
under this section.

(6) In calculating a gaming provider’s profits on remote gaming for an accounting
period, no account is to be taken of gaming payments, assignments of amounts
40to a pool or expenditure on prizes so far as they relate to remote gaming to
which an exemption applies as a result of this section or regulations under it.

155 Liability to pay

(1) A gaming provider is liable for any remote gaming duty charged on the
provider’s profits on remote gaming for an accounting period.

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(2) If the gaming provider is a body corporate, the provider and the provider’s
directors are jointly and severally liable for any remote gaming duty charged
on the provider’s profits on remote gaming for an accounting period.

(3) Remote gaming duty which is charged on the gaming provider’s profits on
5remote gaming for an accounting period may be recovered from the holder of
a remote operating licence for the business in the course of which the gaming
took place as if the holder of the licence and the provider were jointly and
severally liable to pay the duty.

CHAPTER 4 General

10Administration

156 Administration

(1) The Commissioners are responsible for the collection and management of
general betting duty, pool betting duty and remote gaming duty.

(2) General betting duty, pool betting duty and remote gaming duty are to be
15accounted for by such persons, and accounted for and paid at such times and
in such manner, as may be required by or under regulations made by the
Commissioners.

(3) The Commissioners may make regulations providing for any matter for which
provision appears to them to be necessary for the administration or
20enforcement of, or for the protection of the revenue from, general betting duty,
pool betting duty and remote gaming duty.

(4) Nothing in sections 157 to 162 affects the generality of the powers conferred by
this section.

157 Registration

(1) 25The Commissioners must maintain the following registers—

(a) a register of persons who, by virtue of being bookmakers, being treated
by section 126 as bookmakers or providing facilities for making bets,
are (or may become) liable to pay general betting duty,

(b) a register of persons who, by virtue of being bookmakers, are (or may
30become) liable to pay pool betting duty, and

(c) a register of persons who, by virtue of entering into arrangements for
chargeable persons to participate in remote gaming, are (or may
become) liable to pay remote gaming duty.

(2) A person falling within any paragraph of subsection (1) may not carry on an
35activity by virtue of which the person falls within that paragraph without
being registered in the register maintained under that paragraph.

(3) The Commissioners may make regulations about registration; in particular, the
regulations may include provision about—

(a) the procedure for applying for registration (including provision
40requiring applications to be made electronically);

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(b) the timing of applications (including provision for applications to be
made and determined before 1 December 2014);

(c) the information to be provided;

(d) notification of changes;

(e) 5de-registration;

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

(4) The regulations may require a person registered under this section to give
notice to the Commissioners before applying for a remote operating licence.

(5) The regulations may permit the Commissioners to impose conditions or
10requirements on persons registered under this section.

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

(7) The modifications may, for example, include a modification ensuring that each
15member of a group will be jointly and severally liable for the duty payable by
any member of the group.

158 Accounting period

(1) For the purposes of this Part—

(a) a period of 3 consecutive months is an accounting period, but

(b) 20the Commissioners may by regulations provide for some other period
specified in, or determined in accordance with, the regulations to be an
accounting period.

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

(3) 25The Commissioners may agree with a person to make either or both of the
following changes for the purposes of that person’s liability to general betting
duty, pool betting duty or remote gaming duty—

(a) to treat specified periods (whether longer or shorter than 3 months) as
accounting periods;

(b) 30to begin accounting periods on days other than those applying by
virtue of subsection (2).

(4) The Commissioners may by direction make transitional arrangements for
periods (whether of 3 months or otherwise) to be treated as accounting periods
where—

(a) 35a person becomes or ceases to be registered, or

(b) an agreement under subsection (3) begins or ends.

(5) A direction under this section—

(a) may apply generally or only to a particular case or class of case, and

(b) must be published unless it applies only to a particular case.

159 40Returns

(1) The Commissioners may make regulations requiring returns to be made to the
Commissioners in respect of general betting duty, pool betting duty and
remote gaming duty.

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(2) The regulations 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.

160 Payment

(1) The Commissioners may by regulations make provision about payment of
general betting duty, pool betting duty and remote gaming duty.

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

(a) 15timing (including provision requiring payments to be made on
account),

(b) instalments,

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

(d) 20when payment is to be treated as made, and

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

(3) Subject to regulations under section 156 and this section, section 12 of FA 1994
(assessment) applies in relation to liability to pay general betting duty, pool
25betting duty and remote gaming duty.

161 Information and records

The Commissioners may by regulations require the provision to such persons,
or display in such manner, of such information or records as the regulations
may specify—

(a) 30by persons engaging or proposing to engage in any activity by reason
of which they are, or may be or become, liable for general betting duty,
pool betting duty or remote gaming duty (or would be or might be or
become liable to general betting duty if on-course bets were not
excluded), and

(b) 35by persons providing facilities for another to engage in such an activity
or entering into any transaction in the course of any such activity.

162 Stake funds and gaming prize funds

(1) The Treasury may by regulations make provision as to the circumstances in
which—

(a) 40the stake money on a bet is, or is not, to be treated for the purposes of
this Part as assigned to a Chapter 1 stake fund or a Chapter 2 stake fund,

(b) gaming payments are, or are not, to be treated for the purposes of this
Part as assigned to a gaming prize fund,

Finance (No. 2) BillPage 117

(c) an amount contained in a Chapter 1 stake fund or a Chapter 2 stake
fund is, or is not, to be treated for the purposes of this Part as being used
otherwise than to provide winnings, and

(d) an amount contained in a gaming prize fund is, or is not, to be treated
5for the purposes of this Part as being used otherwise than to provide
prizes.

(2) The Commissioners may by notice published by them make provision about
Chapter 1 stake funds, Chapter 2 stake funds and gaming prize funds, and
such a notice may (in particular) make provision as to how such funds are to
10be held.

Security and enforcement

163 Security for payment

(1) The Commissioners may by notice given to a registrable person require the
person to give security, or further security, for the payment of any general
15betting duty, pool betting duty or remote gaming duty for which the person is
or may become liable.

(2) The Commissioners may give such a notice only if they consider—

(a) that there is a serious risk that the duty will not be paid, or

(b) that the person usually lives in or, if a body corporate, is legally
20constituted in a country or territory with which the United Kingdom
does not have satisfactory arrangements for the enforcement of
liabilities.

(3) The notice must specify—

(a) the amount of security or further security to be given, and

(b) 25the manner in which, and the date by which, the security or further
security is to be given.

(4) That date must not be less than 30 days after the date when the notice is given
(and must not be before 1 December 2014).

(5) Any requirement imposed by the notice has no effect at any time when—

(a) 30the registrable person is entitled under Chapter 2 of Part 1 of FA 1994
to require a review of, or to bring an appeal against, the decision to give
the notice,

(b) an appeal may ordinarily be brought against a decision on such a
review or appeal, or

(c) 35proceedings on such a review, appeal or further appeal are in progress.

(6) A person is a “registrable person” for the purposes of this Part if the person—

(a) is, or is required to be, registered under section 157, or

(b) has applied for registration under that section.

164 Appointment of UK representative

(1) 40The Commissioners may by notice given to a registrable person require the
person to appoint a United Kingdom representative.

(2) The representative must be a person approved by the Commissioners for the
purposes of this section.

Finance (No. 2) BillPage 118

(3) The Commissioners may give such a notice only if they consider that the
registrable person usually lives in or, if a body corporate, is legally constituted
in a country or territory with which the United Kingdom does not have
satisfactory arrangements for the enforcement of liabilities.

(4) 5The notice must specify the date by which the representative must be
appointed.

(5) That date must not be less than 30 days after the date when the notice was
given (and must not be before 1 December 2014).

(6) It is for the registrable person to decide whether the representative is to have
10responsibility—

(a) for making returns in respect of general betting duty, pool betting duty
or remote gaming duty on behalf of the registrable person, or

(b) for making such returns and for discharging the registrable person’s
liability to general betting duty, pool betting duty or remote gaming
15duty.

(7) The notice may be combined with a notice under section 163, and in such a case
any requirement contained in the notice under that section ceases to have effect
if the registrable person appoints a representative with the responsibilities
mentioned in subsection (6)(b).

(8) 20Any requirement imposed by the notice has no effect at any time when—

(a) the registrable person is entitled under Chapter 2 of Part 1 of FA 1994
to require a review of, or to bring an appeal against, the decision to give
the notice,

(b) an appeal may ordinarily be brought against a decision on such a
25review or appeal, or

(c) proceedings on such a review, appeal or further appeal are in progress.

165 Security and representatives: review and appeal

(1) A decision to give a notice under section 163(1) or 164(1) is to be treated as a
relevant decision for the purposes of sections 15A and 15C to 16 of FA 1994
30(customs and excise reviews and appeals) and, accordingly, the notice must
include an offer of a review of the decision under section 15A of FA 1994.

(2) Only the registrable person may bring an appeal under section 16 of FA 1994
as applied by subsection (1).

(3) The decision appealed against is to be treated for the purposes of that section
35as a decision as to an ancillary matter.

(4) Such amendments to the notice as are necessary to give effect to any decision
on a review, appeal or further appeal must be made by whichever of the
following is appropriate in the case in question—

(a) the Commissioners,

(b) 40the appeal tribunal, and

(c) the court which has determined an appeal from the appeal tribunal.

(5) An appeal under section 16 of FA 1994 as applied by subsection (1) may not be
entertained unless any amount of general betting duty, pool betting duty or
remote gaming duty (whether or not it is an amount to which the appeal
45relates) due from the registrable person at the date when the appeal is brought
has been paid.

Finance (No. 2) BillPage 119

(6) But an appeal may be entertained despite subsection (5) if, on the application
of the registrable person, the Commissioners are satisfied or (the
Commissioners not being so satisfied) the appeal tribunal decides that the
requirement to pay the duty for which the person is liable would cause the
5person to suffer hardship.

(7) Despite sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007
(rights of appeal), the decision of the appeal tribunal as to the issue of hardship
is final.

(8) In this section “appeal tribunal” has the same meaning as in Chapter 2 of Part
101 of FA 1994.

166 Offence of failing to provide security or appoint representative

(1) A person who is, or is required to be, registered under section 157 is guilty of
an offence if the person—

(a) is required to give security or further security by a notice under section
15163 and does not comply with that requirement, or

(b) is required to appoint a representative by a notice under section 164
and does not comply with that requirement.

(2) A person guilty of an offence under this section is liable, on summary
conviction, to a fine not exceeding level 5 on the standard scale.

167 20Fraudulent evasion

(1) A person commits an offence if the person is knowingly concerned in, or in
taking steps with a view to, the fraudulent evasion of general betting duty,
pool betting duty or remote gaming duty.

(2) A person guilty of an offence under subsection (1) is liable on summary
25conviction to—

(a) imprisonment for a term not exceeding 12 months,

(b) a fine not exceeding the statutory maximum or, if greater, three times
the duty which is unpaid or the payment of which is sought to be
avoided, or

(c) 30both.

(3) A person guilty of an offence under subsection (1) is liable on conviction on
indictment to—

(a) imprisonment for a term not exceeding 7 years,

(b) a fine, or

(c) 35both.

(4) The reference in subsection (2)(a) to 12 months is to be read as a reference to 6
months in relation to an offence committed—

(a) in England and Wales before the commencement of section 154(1) of
the Criminal Justice Act 2003, or

(b) 40in Northern Ireland.

168 Penalties under section 9 of FA 1994

(1) Where general betting duty, pool betting duty or remote gaming duty is
payable by a person, the person’s failure to pay attracts a penalty under section

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