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Finance (No. 2) Bill (HC Bill 190)

Finance (No. 2) BillPage 120

9 of FA 1994, which is to be calculated by reference to the amount of duty
payable.

(2) Any such failure to pay as is mentioned in subsection (1) also attracts daily
penalties under that section.

(3) Subsection (4) applies to a contravention of—

(a) 5section 145 or a notice under that section,

(b) section 157 or regulations under that section,

(c) regulations under section 159,

(d) regulations under section 160,

(e) regulations under section 161,

(f) 10a notice under section 162, or

(g) a notice under section 179.

(4) Such a contravention—

(a) is conduct to which section 9 of FA 1994 applies (penalties), and

(b) attracts daily penalties under that section.

169 15Interest

(1) This section 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 general betting duty, pool betting duty or remote gaming
duty.

(2) 20Interest charged under section 101 of that Act on an amount of such a duty (or
an amount enforceable as if it were such a duty) may be enforced as if it were
an amount of such a duty payable by the person liable for the amount on which
the interest is charged.

170 Suspension and revocation of remote operating licences

25Schedule 23 makes provision about the suspension and revocation of remote
operating licences.

Offences and evidence

171 Offences by bodies corporate

Where an offence under this Part is committed by a body corporate, every
30person who at the date of the commission of the offence is a director, general
manager, secretary or other similar officer of the body corporate (or purporting
to act in such a capacity) is also guilty of the offence unless—

(a) the offence is committed without the person’s consent or connivance,
and

(b) 35the person has exercised all such diligence to prevent its commission as
the person ought to have exercised, having regard to the nature of the
person’s functions in that capacity and to all the circumstances.

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172 Protection of officers

Where an officer of Revenue and Customs takes any action in pursuance of
instructions of the Commissioners given in connection with the enforcement of
the enactments relating to general betting duty, pool betting duty or remote
5gaming duty and, apart from the provisions of this section, the officer would
in taking that action be committing an offence under the enactments relating to
betting or gaming, the officer is not guilty of that offence.

173 Evidence by certificate, etc

(1) A certificate of the Commissioners—

(a) 10that any notice required by or under this Part to be given to them had
or had not been given at any date,

(b) that any registration required by or under this Part had or had not been
effected at any date,

(c) that any return required by or under this Part had not been made at any
15date, or

(d) that any duty shown as due in any return made in pursuance of this
Part or in any assessment made under section 12 of FA 1994 had not
been paid at any date,

is sufficient evidence of that fact until the contrary is proved.

(2) 20A photograph of any document furnished to the Commissioners for the
purposes of this Part and certified by them to be such a photograph is
admissible in any proceedings, whether civil or criminal, to the same extent as
the document itself.

(3) Any document purporting to be a certificate under subsection (1) or (2) is to be
25treated as being such a certificate until the contrary is proved.

174 Facilities capable of being used in United Kingdom: burden of proof

(1) This section applies where, in civil proceedings in any court or tribunal, it is
necessary to determine whether the facilities used to make a bet or to
participate in remote gaming were capable of being used in or from the United
30Kingdom.

(2) The burden of proof lies on any person claiming that the facilities were not
capable of being so used.

Review and appeal

175 Review and appeal

(1) 35The decisions mentioned in subsection (2) are to be treated as if they were listed
in subsection (2) of section 13A of FA 1994 (customs and excise decisions:
meaning of “relevant decision”) and, accordingly, as if they were relevant
decisions for the purposes mentioned in subsection (1) of that section.

(2) The decisions are—

(a) 40a decision consisting in the giving of a direction under section 146(3),

(b) a decision to direct that section 153(2) is not to apply in a specified case,

(c)
a decision under regulations by virtue of section 157(3), and

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(d) a decision to refuse an agreement relating to a person’s liability to
general betting duty, pool betting duty or remote gaming duty under
section 158(3).

(3) A decision mentioned in subsection (2) is to be treated as an ancillary matter
5for the purposes of sections 14 to 16 of FA 1994.

Definitions

176 Bet

In this Part “bet” does not include any bet made or stake hazarded in the course
of, or incidentally to, any gaming.

177 10Pool betting

(1) For the purposes of this Part, a bet is to be treated as being made by way of pool
betting unless it is a bet at fixed odds.

(2) In particular, bets are to be treated as being made by way of pool betting
wherever a number of persons make bets—

(a) 15on terms that the winnings of such of those persons as are winners are
to be, or to be a share of, or to be determined by reference to, the stake
money paid or agreed to be paid by those persons, whether the bets are
made by means of a totalisator, or by filling up and returning coupons
or other printed or written forms, or in any other way,

(b) 20on terms that the winnings of such of those persons as are winners are
to be, or are to include, an amount (not determined by reference to the
stake money paid or agreed to be paid by those persons) which is
divisible in any proportions among such of those persons as are
winners, or

(c) 25on the basis that the winners or their winnings are, to any extent, to be
at the discretion of the promoter or some other person.

(3) Where there is or has been issued any advertisement or other publication
calculated to encourage in persons making bets of any description with or
through a bookmaker a belief that such bets are made on the basis mentioned
30in subsection (2)(c), then any bets of that description subsequently made with
or through the bookmaker are to be treated for the purposes of this section as
being made on that basis.

178 Fixed odds

(1) A bet is at fixed odds for the purposes of this Part only if, when making the bet,
35each of the persons making it knows or can know the amount the person will
win, except in so far as that amount is to depend on—

(a) the result of the event or events betted on,

(b) any such event taking place or producing a result,

(c) the numbers taking part in any such event,

(d) 40the starting prices or totalisator odds for any such event, or

(e) the time when the person’s bet is received by any person with or
through whom it is made.

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(2) A bet made with or through a person carrying on a business of receiving or
negotiating bets and made in the course of that business is not a bet at fixed
odds for the purposes of this Part if the winnings of the person by whom it is
made consist or may consist wholly or in part of something other than money.

(3) 5In this section—

  • “starting prices” means, in relation to any event, the odds ruling at the
    scene of the event immediately before the start, and

  • “totalisator odds” means the odds paid on bets made—

    (a)

    by means of a totalisator, and

    (b)

    10at the scene of the event to which the bets relate.

179 UK person

(1) In this Part “UK person” means—

(a) an individual who usually lives in the United Kingdom, or

(b) a body corporate which is legally constituted in the United Kingdom.

(2) 15The Treasury may by regulations—

(a) amend the definition of “UK person” in subsection (1),

(b) make provision as to the cases in which a person is, or is not, a UK
person for the purposes of this Part, and

(c) make provision about bets made, and arrangements to participate in
20remote gaming entered into, by bodies of persons unincorporate.

(3) The Commissioners may by notice published by them—

(a) specify steps that must be taken in order to determine whether a person
making a bet or entering into arrangements to participate in remote
gaming is a UK person,

(b) 25specify who must take those steps,

(c) specify circumstances in which a person making a bet or entering into
arrangements to participate in remote gaming is to be treated as a UK
person because of a failure to produce sufficient evidence to the
contrary, and

(d) 30specify circumstances in which a person making a bet or entering into
arrangements to participate in remote gaming is to be treated as not
being a UK person on the basis of evidence of a description specified in
the notice.

180 On-course betting and excluded betting

(1) 35A bet is an on-course bet for the purposes of this Part if it—

(a) is made by a person present at a horse or dog race meeting or by a
bookmaker,

(b) is not made through an agent of an individual making the bet or
through an intermediary, and

(c) 40is made—

(i) with a bookmaker present at the meeting, or

(ii) by means of a totalisator situated in the United Kingdom, using
facilities provided at the meeting by or by arrangement with the
person operating the totalisator.

(2) 45A bet is an excluded bet for the purposes of this Part if—

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(a) it is not made in or from the United Kingdom, and

(b) the facilities used to receive or negotiate the bet or (in the case of pool
betting) to conduct the pool betting operations are not capable of being
used in or from the United Kingdom.

(3) 5The Treasury may by regulations amend subsection (2).

181 Gaming

(1) In this Part—

(a) “gaming” means playing a game of chance for a prize, and

(b) “game of chance” has the meaning given by section 6(2) of the
10Gambling Act 2005.

(2) For the purposes of subsection (1)—

(a) “playing a game of chance” is to be read in accordance with section 6(3)
of the Gambling Act 2005, and

(b) “prize” does not include the opportunity to play the game again.

182 15Other definitions

In this Part—

  • “betting facilities” means facilities for receiving or negotiating bets or
    conducting pool betting operations;

  • “bookmaker” means a person who—

    (a)

    20carries on the business of receiving or negotiating bets or
    conducting pool betting operations (whether as principal or
    agent and whether regularly or not), or

    (b)

    holds himself or herself out or permits himself or herself to be
    held out, in the course of a business, as a person within
    25paragraph (a);

  • “the Commissioners” means the Commissioners for Her Majesty’s
    Revenue and Customs;

  • “operator”, in relation to bets made by means of a totalisator, means the
    person who, as principal, operates the totalisator;

  • 30“promoter”, in relation to any betting, means the person to whom the
    persons making the bets look for the payment of their winnings, if any;

  • “remote operating licence” has the same meaning as in the Gambling Act
    2005 (see section 67 of that Act);

  • “winnings”, in relation to any betting, includes winnings of any kind, and
    35references to amount and to payment in relation to winnings are to be
    read accordingly.

183 Index

The Table lists the places where some of the expressions used in this Part are
defined or otherwise explained.

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40bet section 176
bet at fixed odds section 178
bet made for community benefit section 146
betting facilities section 182
5bookmaker section 182
Chapter 1 pool bet section 127(1) to (4)
Chapter 2 pool bet 10section 136(1) to (4)
Chapter 1 stake fund section 127(5)
Chapter 2 stake fund section 136(5)
15chargeable person section 148(2)
the Commissioners section 182
excluded bet 20section 180(2)
financial spread bet section 121(2)
game of chance section 181(1)(b)
25gaming section 181(1)(a)
gaming payment (in Chapter 3) section 152
gaming prize fund 30section 147(2)
gaming provider section 148(1)
general bet section 119
35non-financial spread bet section 121(2)
on-course bet section 180(1)
operator 40section 182
ordinary Chapter 1 pool bet section 127(6)
ordinary Chapter 2 pool bet section 136(6)
45ordinary gaming section 147(3)
pool betting section 177
pooled prize gaming 50section 147(2)
pooled stake Chapter 1 pool bet section 127(5)
pooled stake Chapter 2 pool bet section 136(5)
55promoter section 182
provision of, and expenditure
on, a prize (in sections 149 and
150)
60section 153
registrable person section 163(6)
remote gaming section 147(1)
remote operating licence section 182
5spread bet section 121(1)
stake money (in Chapter 1) section 132
stake money (in Chapter 2) 10section 141
UK person section 179
winnings (in Chapter 1) sections 133 and 182
15winnings (in Chapter 2) sections 142 and 182

Supplementary

184 Amounts not in sterling

(1) If any amount of stake money, gaming payment, winnings or prize is in a
20currency or method of payment other than sterling, it is to be treated for the
purposes of this Part as being the equivalent amount in sterling.

(2) The equivalent amount in sterling, in relation to any day, is to be determined
by reference to—

(a) the London closing exchange rate for the previous day, or

(b) 25if no such rate exists, the rate specified in or determined in accordance
with a notice published by the Commissioners.

185 Limited liability partnerships

(1) This Part applies to limited liability partnerships as it applies to companies.

(2) In its application to a limited liability partnership, references to a director of a
30company are references to a member of the limited liability partnership.

186 Effect of imposition of duties

The imposition by this Part of general betting duty, pool betting duty, or
remote gaming duty does not make lawful anything which is unlawful apart
from this Part.

187 35Regulations

(1) Regulations under this Part—

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

(b) may make different provision for different cases or purposes,

(c) 40may include incidental, consequential, transitional or transitory
provision,

(d) may confer a discretion on the Commissioners, and

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(e) may make provision by reference to things specified in a notice
published by the Commissioners in accordance with the regulations
(and not withdrawn by a subsequent notice).

(2) Regulations under this Part are to be made by statutory instrument.

(3) 5A statutory instrument containing regulations under this Part is subject to
annulment in pursuance of a resolution of the House of Commons.

(4) But the following provisions of this section apply instead of subsection (3) in
the case of—

(a) regulations under section 154(5) which have the effect of adding to the
10class of activities in respect of which remote gaming duty is chargeable;

(b) regulations under section 162(1) which have the effect of increasing the
amount of duty that is chargeable in any case;

(c) regulations under section 179(2) which have the effect of adding to the
class of persons falling within the definition of “UK person”;

(d) 15regulations under section 180(3).

(5) In such a case—

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

(b) the regulations cease to have effect at the end of the period of 28 days
20beginning with the day on which the instrument was made unless,
before the end of that period, the instrument 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
which—

(a) 25Parliament is dissolved or prorogued, or

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

(7) If regulations cease to have effect as a result of subsection (5), that does not—

(a) affect anything previously done under the regulations, or

(b) prevent the making of new regulations.

188 30Notices

A notice published by the Commissioners under this Part may be revised or
replaced by them.

189 Consequential amendments and repeals

Schedule 24 contains consequential amendments and repeals.

190 35Transitional and saving provisions

Schedule 25 contains transitional and saving provisions.

191 Commencement and effect

(1) This Part (except sections 157(2), 166 and 189 and Schedule 24) comes into force
on the day on which this Act is passed.

(2) 40The following provisions come into force on 1 December 2014—

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(a) section 157(2),

(b) section 166, and

(c) paragraphs 1 to 27 and 31 of Schedule 24 (and section 189 so far as
relating to those paragraphs).

(3) 5Paragraphs 28 to 30 of Schedule 24 (and section 189 so far as relating to those
paragraphs) come into force on such day as the Treasury may by order made
by statutory instrument appoint.

(4) An order under subsection (3)—

(a) may commence a provision generally or only for specified purposes,
10and

(b) may appoint different days for different provisions or for different
purposes.

(5) Sections 118 to 175 have effect for the purposes of accounting periods
beginning on or after 1 December 2014, and—

(a) 15the charges under sections 120(1), 122(1), 123(1), 128(1) and 137(1) are
on bets made on or after that date,

(b) the charge under section 134(2) is in respect of bets determined on or
after that date, and

(c) the charge under section 148(1) is on games of chance that begin to be
20played on or after that date.

Part 4 Follower notices and accelerated payments

CHAPTER 1 Introduction

Overview

192 25Overview of Part 4

In this Part—

(a) sections 193 to 196 set out the main defined terms used in the Part,

(b) Chapter 2 makes provision for follower notices and for penalties if
account is not taken of judicial rulings which lay down principles or
30give reasoning relevant to tax cases,

(c) Chapter 3 makes—

(i) provision for accelerated payments to be made on account of
tax,

(ii) provision restricting the circumstances in which payments of
35tax can be postponed pending an appeal, and

(iii) provision to enable a court to prevent repayment of tax, for the
purpose of protecting the public revenue.

(d) Chapter 4—

(i) makes special provision about the application of this Part in
40relation to stamp duty land tax and annual tax for enveloped
dwellings,

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(ii) confers a power to extend the provisions of this Part to other
taxes, and

(iii) makes amendments consequential on this Part.

Main definitions

193 5“Relevant tax”

In this Part, “relevant tax” means—

(a) income tax,

(b) capital gains tax,

(c) corporation tax, including any amount chargeable as if it were
10corporation tax or treated as if it were corporation tax,

(d) inheritance tax,

(e) stamp duty land tax, and

(f) annual tax on enveloped dwellings.

194 “Tax advantage” and “tax arrangements”

(1) 15This section applies for the purposes of this Part.

(2) “Tax advantage” includes—

(a) relief or increased relief from tax,

(b) repayment or increased repayment of tax,

(c) avoidance or reduction of a charge to tax or an assessment to tax,

(d) 20avoidance of a possible assessment to tax,

(e) deferral of a payment of tax or advancement of a repayment of tax, and

(f) avoidance of an obligation to deduct or account for tax.

(3) Arrangements are “tax arrangements” if, having regard to all the
circumstances, it would be reasonable to conclude that the obtaining of a tax
25advantage was the main purpose, or one of the main purposes, of the
arrangements.

(4) “Arrangements” includes any agreement, understanding, scheme, transaction
or series of transactions (whether or not legally enforceable).

195 “Tax enquiry” and “return”

(1) 30This section applies for the purposes of this Part.

(2) “Tax enquiry” means—

(a) an enquiry under section 9A or 12AC of TMA 1970 (enquiries into self-
assessment returns for income tax and capital gains tax), including an
enquiry by virtue of notice being deemed to be given under section 9A
35of that Act by virtue of section 12AC(6) of that Act,

(b) an enquiry under paragraph 5 of Schedule 1A to that Act (enquiry into
claims made otherwise than by being included in a return),

(c) an enquiry under paragraph 24 of Schedule 18 to FA 1998 (enquiry into
company tax return for corporation tax etc), including an enquiry by
40virtue of notice being deemed to be given under that paragraph by
virtue of section 12AC(6) of TMA 1970,