Finance Bill (HC Bill 1)

(a) an amount of the bank levy is treated as if it were an amount of
corporation tax chargeable on an entity (“E”) for an accounting period
of E,

(b) the chargeable period in respect of which the amount of the bank levy
5is charged falls (or partly falls) on or after 1 January 2014, and

(c) under the Instalment Payment Regulations, one or more instalment
payments, in respect of the total liability of E for the accounting period,
were treated as becoming due and payable before the commencement
date (“pre-commencement instalment payments”).

(7) 10Subsections (1) to (5) are to be ignored for the purpose of determining the
amount of any pre-commencement instalment payment.

(8) If there is at least one instalment payment, in respect of the total liability of E
for the accounting period, which under the Instalment Payment Regulations is
treated as becoming due and payable on or after the commencement date
15(“post-commencement instalment payments”), the amount of that instalment
payment, or the first of them, is to be increased by the adjustment amount.

(9) If there are no post-commencement instalment payments, a further instalment
payment, in respect of the total liability of E for the accounting period, of an
amount equal to the adjustment amount is to be treated as becoming due and
20payable at the end of the period of 30 days beginning with the commencement
date.

(10) “The adjustment amount” is the difference between—

(a) the aggregate amount of the pre-commencement instalments
determined in accordance with subsection (7), and

(b) 25the aggregate amount of those instalment payments determined
ignoring subsection (7) (and so taking account of subsections (1) to (5)).

(11) In the Instalment Payment Regulations—

(a) in regulations 6(1)(a), 7(2), 8(1)(a) and (2)(a), 9(5), 10(1), 11(1) and 13,
references to regulation 4A, 4B, 4C, 4D, 5, 5A or 5B of those Regulations
30are to be read as including a reference to subsections (6) to (10) (and in
regulation 7(2) “the regulation in question”, and in regulation 8(2) “that
regulation”, are to be read accordingly), and

(b) in regulation 9(3), the reference to those Regulations is to be read as
including a reference to subsections (6) to (10).

(12) 35In section 59D of TMA 1970 (general rule as to when corporation tax is due and
payable), in subsection (5), the reference to section 59E is to be read as
including a reference to subsections (6) to (11).

(13) In this section—

• “the chargeable period” is to be construed in accordance with paragraph
  404 or (as the case may be) 5 of Schedule 19 to FA 2011;

• “the commencement date” means the day on which this Act is passed;

• “the Instalment Payment Regulations” means the Corporation Tax
  (Instalment Payments) Regulations 1998 (S.I. 1998/3175S.I. 1998/3175);

and references to the total liability of E for an accounting period are to be
45construed in accordance with regulation 2(3) of the Instalment Payment
Regulations.

113 Bank levy: miscellaneous changes

Schedule 22 contains miscellaneous changes to the bank levy.

Gaming duty

114 Rates of gaming duty

(1) 5In section 11(2) of FA 1997 (rates of gaming duty) for the table substitute—

(2) The amendment made by this section has effect in relation to accounting
15periods beginning on or after 1 April 2014.

Bingo duty

115 Rate of bingo duty

(1) In section 17(1)(b) of BGDA 1981 (bingo duty chargeable at 20 per cent of bingo
promotion profits), for “20” substitute “10”.

(2) 20The amendment made by subsection (1) has effect in relation to accounting
periods beginning on or after 30 June 2014.

116 Exemption from bingo duty: small-scale amusements provided commercially

(1) In paragraph 5(1) of Schedule 3 to BGDA 1981 (exemptions from bingo duty for
small-scale amusements provided commercially), for paragraph (b)
25substitute—

“(b) on any premises if, for the time being—

(i) a machine in respect of which a person is liable for
machine games duty is located on the premises, and

(ii) an adult gaming centre premises licence issued under
30Part 8 of the Gambling Act 2005 (see section 150(1)(c))
is in force in respect of the premises; or”.

(2) The amendment made by this section has effect in relation to games of bingo
which begin to be played on or after the day on which this Act is passed.

Machine games duty

117 Rates of machine games duty

(1) Schedule 24 to FA 2012 is amended as follows.

(2) For paragraph 5 substitute—

5“Types of machine

5 (1) Machines are divided into three types for the purposes of machine
games duty.

(2) A machine is a “type 1 machine” if it can be demonstrated that—

(a) the highest charge payable for playing a dutiable machine
10game on the machine does not exceed 20p, and

(b) the maximum amount of cash that can be won from playing
a dutiable machine game on the machine does not exceed £10.

(3) A machine is a “type 2 machine” if—

(a) it is not a type 1 machine, and

(b) 15it can be demonstrated that the highest charge payable for
playing a dutiable machine game on the machine does not
exceed £5.

(4) Any other machine is a “type 3 machine”.

(5) The Treasury may by order substitute for a sum for the time being
20specified in sub-paragraph (2)(a) or (b) or (3)(b) such higher sum as
may be specified in the order.”

(3) For paragraph 6(2) substitute—

“(2) The amount of the duty is found by—

(a) applying the lower rate to the person’s total net takings in the
25accounting period for type 1 machines,

(b) applying the standard rate to the person’s total net takings in
the accounting period for type 2 machines,

(c) applying the higher rate to the person’s total net takings in
the accounting period for type 3 machines, and

(d) 30aggregating the results.”

(4) For paragraph 9 substitute—

“The rates

9 (1) The lower rate is 5%.

(2) The standard rate is 20%.

(3) 35The higher rate is 25%.

(4) If a rate changes during an accounting period—

(a) the old rate is to be applied to the person’s total net takings in
the part of the period before the change, and

(b) the new rate is to be applied to the person’s total net takings
40in the part of the period after the change.

(5) If it is not possible to identify for the purposes of sub-paragraph (4)
the part of the period to which an amount relates, it is to be
apportioned on a just and reasonable basis.”

(5) The Machine Games Duty (Types of Machine) Order 2014 (S.I. 2014/47S.I. 2014/47) is
5revoked.

(6) The amendments and revocation made by this section have effect in relation to
the playing of machine games on or after 1 March 2015.

Part 3 General betting duty, pool betting duty and remote gaming duty

CHAPTER 1 10General betting duty

The duty

118 General betting duty

A duty of excise, to be known as general betting duty, is charged in accordance
with this Chapter.

15General and spread bets

119 General bets

(1) A bet is a general bet for the purposes of this Part if—

(a) it is not an on-course bet,

(b) it is not a spread bet,

(c) 20it is not made by way of pool betting, and

(d) one or more of conditions A to C is met in relation to it.

(2) Condition A is that the person who makes the bet (whether as principal or
agent) does so while present at a place in the United Kingdom where betting
facilities are provided in the course of a business and the bet is made using
25those facilities.

(3) Condition B is that—

(a) the person who makes the bet as principal is a UK person, and

(b) the bet is not an excluded bet.

(4) Condition C is that—

(a) 30the person who makes the bet as principal is a body corporate not
legally constituted in the United Kingdom,

(b) the bookmaker with whom the bet is made knows or has reasonable
cause to believe that at least one potential beneficiary of any winnings
from the bet is a UK person, and

(c) 35the bet is not an excluded bet.

120 General betting duty charge on general bets

(1) General betting duty is charged on a general bet made with a bookmaker.

(2) It is charged at the rate of 15% of the bookmaker’s profits on general bets for
an accounting period.

(3) 5The bookmaker’s profits on general bets for an accounting period are the
aggregate of—

(a) the amount of the bookmaker’s ordinary profits for the period in
respect of general bets (calculated in accordance with section 124), and

(b) the amount of the bookmaker’s retained winnings profits for the period
10in respect of general bets (calculated in accordance with section 125).

(4) Where the calculation for an accounting period under subsection (3) produces
a negative amount—

(a) the bookmaker’s profits on general bets for the accounting period are
treated as nil, and

(b) 15the amount produced by the calculation may be carried forward in
reduction of the bookmaker’s profits on general bets for one or more
later accounting periods.

121 Spread bets

(1) A bet is a spread bet for the purposes of this Part if it constitutes a contract the
20making or accepting of which is a regulated activity within the meaning of
section 22 of the Financial Services and Markets Act 2000.

(2) In this Part—

• “financial spread bet” means a spread bet the subject of which is a
  financial matter, and

• 25“non-financial spread bet” means any other spread bet.

(3) The Commissioners may by regulations provide that a specified matter—

(a) is to be treated as a financial matter for the purposes of subsection (2),
or

(b) is not to be treated as a financial matter for those purposes.

122 30General betting duty charge on financial spread bets

(1) General betting duty is charged on a financial spread bet made with a
bookmaker who is in the United Kingdom.

(2) It is charged at the rate of 3% of the bookmaker’s profits on financial spread
bets for an accounting period.

(3) 35The bookmaker’s profits on financial spread bets for an accounting period are
the aggregate of—

(a) the amount of the bookmaker’s ordinary profits for the period in
respect of financial spread bets (calculated in accordance with section
124), and

(b) 40the amount of the bookmaker’s retained winnings profits for the period
in respect of financial spread bets (calculated in accordance with
section 125).

(4) Where the calculation for an accounting period under subsection (3) produces
a negative amount—

(a) the bookmaker’s profits on financial spread bets for the accounting
period are treated as nil, and

(b) 5the amount produced by the calculation may be carried forward in
reduction of the bookmaker’s profits on financial spread bets for one or
more later accounting periods.

123 General betting duty charge on non-financial spread bets

(1) General betting duty is charged on a non-financial spread bet made with a
10bookmaker who is in the United Kingdom.

(2) It is charged at the rate of 10% of the bookmaker’s profits on non-financial
spread bets for an accounting period.

(3) The bookmaker’s profits on non-financial spread bets for an accounting period
are the aggregate of—

(a) 15the amount of the bookmaker’s ordinary profits for the period in
respect of non-financial spread bets (calculated in accordance with
section 124), and

(b) the amount of the bookmaker’s retained winnings profits for the period
in respect of non-financial spread bets (calculated in accordance with
20section 125).

(4) Where the calculation for an accounting period under subsection (3) produces
a negative amount—

(a) the bookmaker’s profits on non-financial spread bets for the accounting
period are treated as nil, and

(b) 25the amount produced by the calculation may be carried forward in
reduction of the bookmaker’s profits on non-financial spread bets for
one or more later accounting periods.

124 Ordinary profits

Take the following steps to calculate the amount of a bookmaker’s ordinary
30profits in respect of a class of bets for an accounting period.

Step 1

Calculate the aggregate of the stake money falling due to the bookmaker in the
accounting period in respect of bets of that class made with the bookmaker.

Step 2

35Calculate the aggregate of the amounts paid by the bookmaker in that period
by way of winnings to persons who made bets of that class with the bookmaker
(irrespective of when the bets were made or determined).

Step 3

125 Retained winnings profits

(1) 40The amount of a bookmaker’s retained winnings profits in respect of a class of
bets for an accounting period is the aggregate of amounts which cease to be
qualifying amounts in 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 133(2)(b), it has been
taken into account in calculating the bookmaker’s ordinary profits for bets of
that class in any accounting period.

(3) 5An amount ceases to be a qualifying amount for the purposes of this section if,
otherwise than by virtue of being withdrawn by P as mentioned in section
133(2)(b), P ceases to be entitled to withdraw it.

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

126 10Bet-brokers

(1) This section applies where—

(a) one person (the “bettor”) makes a bet with another person (the “bet-
taker”) using facilities provided in the course of a business, other than
a betting exchange business, by a third person (the “bet-broker”), or

(b) 15one person (the “bet-broker”) in the course of a business makes a bet
with another person (the “bet-taker”) as the agent of a third person (the
“bettor”) (whether the bettor is a disclosed principal or an undisclosed
principal).

(2) For the purposes of sections 119 to 125—

(a) 20the bet is to be treated as if it were made separately by the bettor with
the bet-broker and by the bet-broker with the bet-taker,

(b) the bet-broker is to be treated as a bookmaker in respect of the bet,

(c) the aggregate of amounts due to be paid by the bettor in respect of the
bet is to be treated as being due separately to the bet-broker and to the
25bet-taker (and any amount due to be paid by the bet-broker to the bet-
taker is to be disregarded), and

(d) a sum paid by the bet-taker by way of winnings in respect of the bet is
to be treated as having been paid separately by the bet-taker and by the
bet-broker at that time and for that purpose (and any sum paid by the
30bet-broker is to be disregarded).

(3) Where there is any doubt as to which of two persons is the bettor and which
the bet-taker for the purposes of subsection (1)(a), whichever of the two was
the first to use the facilities of the bet-broker to offer the bet is to be treated as
the bet-taker.

(4) 35In this section “betting exchange business” means a business such as is
mentioned in section 134(1).

Pool betting on horse and dog races

127 Chapter 1 pool bets

(1) A bet is a “Chapter 1 pool bet” for the purposes of this Part if—

(a) 40it relates only to horse racing or dog racing,

(b) it is not an on-course bet,

(c) it is made by way of pool betting, and

(d) one or more of conditions A to C is met in relation to it.

(2) Condition A is that the person who makes the bet (whether as principal or
agent) does so while present at a place in the United Kingdom where betting
facilities are provided in the course of a business and the bet is made using
those facilities.

(3) 5Condition B is that—

(a) the person who makes the bet as principal is a UK person, and

(b) the bet is not an excluded bet.

(4) Condition C is that—

(a) the person who makes the bet as principal is a body corporate not
10legally constituted in the United Kingdom,

(b) the bookmaker with whom the bet is made knows or has reasonable
cause to believe that at least one potential beneficiary of any winnings
from the bet is a UK person, and

(c) the bet is not an excluded bet.

(5) 15A Chapter 1 pool bet is a “pooled stake Chapter 1 pool bet” for the purposes of
this Part if all or any part of the stake money on the bet is assigned by or on
behalf of the bookmaker with whom it is made to a fund (referred to in this Part
as a “Chapter 1 stake fund”) from which winnings are to be paid in respect of
pool betting.

(6) 20A Chapter 1 pool bet is an “ordinary Chapter 1 pool bet” for the purposes of
this Part if it is not a pooled stake Chapter 1 pool bet.

128 General betting duty charge on Chapter 1 pool bets

(1) General betting duty is charged on a Chapter 1 pool bet made with a
bookmaker.

(2) 25It is charged at the rate of 15% of the bookmaker’s profits on Chapter 1 pool
bets for an accounting period.

(3) The bookmaker’s profits on Chapter 1 pool bets for an accounting period are
the aggregate of—

(a) the amount of the bookmaker’s profits for the period in respect of
30pooled stake Chapter 1 pool bets (calculated in accordance with section
129), and

(b) the amount of the bookmaker’s profits for the period in respect of
ordinary Chapter 1 pool bets (calculated in accordance with section
130), and

(c) 35the amount of the bookmaker’s profits for the period in respect of
retained winnings on Chapter 1 pool bets (calculated in accordance
with section 131).

(4) Where the calculation for an accounting period under subsection (3) produces
a negative amount—

(a) 40the bookmaker’s profits on Chapter 1 pool bets for the accounting
period are treated as nil, and

(b) the amount produced by the calculation may be carried forward in
reduction of the bookmaker’s profits on Chapter 1 pool bets for one or
more later accounting periods.

129 Profits on pooled stake Chapter 1 pool bets

(1) Take the following steps to calculate the amount of a bookmaker’s profits for
an accounting period in respect of pooled stake Chapter 1 pool bets.

Step 1

5Take the aggregate of the relevant stake money falling due to the bookmaker
in the accounting period and deduct the aggregate of any of that stake money
that is assigned by or on behalf of the bookmaker to Chapter 1 stake funds
during the period.

Step 2

10If in the accounting period any amount contained in a Chapter 1 stake fund to
which relevant stake money has been assigned by or on behalf of the
bookmaker is used otherwise than to provide winnings to persons who made
bets by way of pool betting, multiply each amount so used in the accounting
period by the relevant proportion that applies in relation to it.

15Step 3

Add 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 Chapter 1 stake
20fund by the bookmaker, multiply the amount of each top-up payment so
assigned 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
25calculated under Step 3.

Subtract 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 winnings, is—

(a) 30if the amount relates to bets on a specific event, the proportion of that
amount that consists of relevant stake money that fell due to the
bookmaker in respect of the bets,

(b) if the amount does not relate to bets on a specific event but relates to
amounts assigned to the fund during a specific period, the proportion
35of that amount that consists of relevant stake money assigned to the
fund by or on behalf of the bookmaker 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 stake money assigned to the fund by or on behalf of the
40bookmaker.

(3) For the purposes of Step 4—

(a) a top-up payment is assigned to a Chapter 1 stake fund if the
bookmaker assigns an amount (other than stake money on a bet) to the
fund to satisfy a guarantee given by the bookmaker that a specified
45minimum amount of winnings will be available in respect of bets made
with the bookmaker, and

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

(4) 50A notice under subsection (3)(b) may provide for top-up payments to be
ignored for the purposes of Step 4 in a specified case or class of cases.

(5) In this section “relevant stake money” means stake money in respect of a
pooled stake Chapter 1 pool bet.

130 Profits on ordinary Chapter 1 pool bets

To calculate the amount of a bookmaker’s profits for an accounting period in
5respect of ordinary Chapter 1 pool bets—

(a) take the aggregate of the stake money falling due to the bookmaker in
the accounting period in respect of such bets, and

(b) subtract the aggregate of the expenditure by or on behalf of the
bookmaker for the period on winnings in respect of such bets.

131 10Profits on retained winnings on Chapter 1 pool bets

(1) The amount of a bookmaker’s profits for an accounting period in respect of
retained winnings on Chapter 1 pool bets is the aggregate of the amounts
which cease to be qualifying amounts in the accounting period.

(2) An amount is a qualifying amount for the purposes of this section if, as a result
15of a person (“P”) being notified as mentioned in section 133(2)(b), it has been
taken into account in calculating the bookmaker’s profits for any accounting
period under section 129 or 130.

(3) An amount ceases to be a qualifying amount for the purposes of this section if,
otherwise than by virtue of being withdrawn from the account by P as
20mentioned in section 133(2)(b), P ceases to be entitled to withdraw it.

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

Stake money and winnings

132 Chapter 1: stake money

(1) 25For the purposes of this Chapter the stake money on a bet is the aggregate of
the amounts which fall due in respect of the bet.

(2) If the stake money falls due to a person other than the bookmaker with whom
the bet is made, it is to be treated as falling due to the bookmaker.

(3) Where the bet is not a spread bet and the sum which the person who makes the
30bet will lose if unsuccessful is known when the bet is made, that sum is to be
treated as falling due when the bet is made (irrespective of when it is actually
paid or required to be paid).

(4) Where the person who makes the bet does so in pursuance of an offer which
permits the person to pay nothing or less than the amount which the person
35would have been required to pay without the offer, the person is to be treated
as being due to pay that amount—

(a) to the bookmaker with whom the bet is made, and

(b) at the time when the bet is made.

(5) All payments made—

(a) 40for or on account of or in connection with the bet,

(b) in addition to amounts falling due in respect of the bet, and