PART 3 continued CHAPTER 4 continued
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A bet is at fixed odds for the purposes of this Part only if, when making the bet,
each 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) the starting prices or totalisator odds for any such event, or
the time when the person’s bet is received by any person with or
through whom it is made.
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) In 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—
by means of a totalisator, and
at the scene of the event to which the bets relate.
(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) The Treasury may by regulations—
(a) amend the definition of “UK person” in subsection (1),
make provision as to the cases in which a person is, or is not, a UK
person for the purposes of this Part, and
make provision about bets made, and arrangements to participate in
remote gaming entered into, by bodies of persons unincorporate.
(3) The Commissioners may by notice published by them—
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) specify who must take those steps,
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
specify 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
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(1) A bet is an on-course bet for the purposes of this Part if it—
is made by a person present at a horse or dog race meeting or by a
is not made through an agent of an individual making the bet or
through an intermediary, and
(c) is made—
(i) with a bookmaker present at the meeting, or
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) A bet is an excluded bet for the purposes of this Part if—
(a) it is not made in or from the United Kingdom, and
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) The Treasury may by regulations amend subsection (2).
(1) In this Part—
(a) “gaming” means playing a game of chance for a prize, and
“game of chance” has the meaning given by section 6(2) of the
Gambling Act 2005.
(2) For the purposes of subsection (1)—
“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.
In this Part—
“betting facilities” means facilities for receiving or negotiating bets or
conducting pool betting operations;
“bookmaker” means a person who—
carries on the business of receiving or negotiating bets or
conducting pool betting operations (whether as principal or
agent and whether regularly or not), or
holds himself or herself out or permits himself or herself to be
held out, in the course of a business, as a person within
“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;
“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);
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“winnings”, in relation to any betting, includes winnings of any kind, and
references to amount and to payment in relation to winnings are to be
The Table lists the places where some of the expressions used in this Part are
defined or otherwise explained.
|bet at fixed odds||section 178|
|bet made for community benefit||section 146|
|betting facilities||section 182|
|Chapter 1 pool bet||section 127(1) to (4)|
|Chapter 2 pool bet||section 136(1) to (4)|
|Chapter 1 stake fund||section 127(5)|
|Chapter 2 stake fund||section 136(5)|
|chargeable person||section 148(2)|
|the Commissioners||section 182|
|excluded bet||section 180(2)|
|financial spread bet||section 121(2)|
|game of chance||section 181(1)(b)|
|gaming payment (in Chapter 3)||section 152|
|gaming prize fund||section 147(2)|
|gaming provider||section 148(1)|
|general bet||section 119|
|non-financial spread bet||section 121(2)|
|on-course bet||section 180(1)|
|ordinary Chapter 1 pool bet||section 127(6)|
|ordinary Chapter 2 pool bet||section 136(6)|
|ordinary gaming||section 147(3)|
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|pool betting||section 177|
|pooled prize gaming||section 147(2)|
|pooled stake Chapter 1 pool bet||section 127(5)|
|pooled stake Chapter 2 pool bet||section 136(5)|
|provision of, and expenditure
on, a prize (in sections 149 and
|registrable person||section 163(6)|
|remote gaming||section 147(1)|
|remote operating licence||section 182|
|spread bet||section 121(1)|
|stake money (in Chapter 1)||section 132|
|stake money (in Chapter 2)||section 141|
|UK person||section 179|
|winnings (in Chapter 1)||sections 133 and 182|
|winnings (in Chapter 2)||sections 142 and 182|
If any amount of stake money, gaming payment, winnings or prize is in a
currency 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.
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
if no such rate exists, the rate specified in or determined in accordance
with a notice published by the Commissioners.
(1) This Part applies to limited liability partnerships as it applies to companies.
In its application to a limited liability partnership, references to a director of a
company are references to a member of the limited liability partnership.
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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.
(1) Regulations under this Part—
may make provision which applies generally or only for specified cases
(b) may make different provision for different cases or purposes,
may include incidental, consequential, transitional or transitory
(d) may confer a discretion on the Commissioners, and
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.
A statutory instrument containing regulations under this Part is subject to
annulment in pursuance of a resolution of the House of Commons.
But the following provisions of this section apply instead of subsection (3) in
the case of—
regulations under section 154(5) which have the effect of adding to the
class of activities in respect of which remote gaming duty is chargeable;
regulations under section 162(1) which have the effect of increasing the
amount of duty that is chargeable in any case;
regulations under section 179(2) which have the effect of adding to the
class of persons falling within the definition of “UK person”;
(d) regulations under section 180(3).
(5) In such a case—
the statutory instrument containing the regulations must be laid before
the House of Commons, and
the regulations cease to have effect at the end of the period of 28 days
beginning 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.
In reckoning the 28-day period, no account is to be taken of any time during
(a) Parliament 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.
A notice published by the Commissioners under this Part may be revised or
replaced by them.
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Schedule 24 contains consequential amendments and repeals.
Schedule 25 contains transitional and saving provisions.
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) The following provisions come into force on 1 December 2014—
(a) section 157(2),
(b) section 166, and
paragraphs 1 to 27 and 31 of Schedule 24 (and section 189 so far as
relating to those paragraphs).
Paragraphs 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)—
may commence a provision generally or only for specified purposes,
may appoint different days for different provisions or for different
Sections 118 to 175 have effect for the purposes of accounting periods
beginning on or after 1 December 2014, and—
the charges under sections 120(1), 122(1), 123(1), 128(1) and 137(1) are
on bets made on or after that date,
the charge under section 134(2) is in respect of bets determined on or
after that date, and
the charge under section 148(1) is on games of chance that begin to be
played on or after that date.
In this Part—
(a) sections 193 to 196 set out the main defined terms used in the Part,
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Chapter 2 makes provision for follower notices and for penalties if
account is not taken of judicial rulings which lay down principles or
give reasoning relevant to tax cases,
(c) Chapter 3 makes—
provision for accelerated payments to be made on account of
provision restricting the circumstances in which payments of
tax can be postponed pending an appeal, and
provision to enable a court to prevent repayment of tax, for the
purpose of protecting the public revenue.
(d) Chapter 4—
makes special provision about the application of this Part in
relation to stamp duty land tax and annual tax for enveloped
confers a power to extend the provisions of this Part to other
(iii) makes amendments consequential on this Part.
In this Part, “relevant tax” means—
(a) income tax,
(b) capital gains tax,
corporation tax, including any amount chargeable as if it were
corporation tax or treated as if it were corporation tax,
(d) inheritance tax,
(e) stamp duty land tax, and
(f) annual tax on enveloped dwellings.
(1) This 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) avoidance 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.
Arrangements are “tax arrangements” if, having regard to all the
circumstances, it would be reasonable to conclude that the obtaining of a tax
advantage was the main purpose, or one of the main purposes, of the
“Arrangements” includes any agreement, understanding, scheme, transaction
or series of transactions (whether or not legally enforceable).
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(1) This section applies for the purposes of this Part.
(2) “Tax enquiry” means—
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
of that Act by virtue of section 12AC(6) of that Act,
an enquiry under paragraph 5 of Schedule 1A to that Act (enquiry into
claims made otherwise than by being included in a return),
an enquiry under paragraph 24 of Schedule 18 to FA 1998 (enquiry into
company tax return for corporation tax etc), including an enquiry by
virtue of notice being deemed to be given under that paragraph by
virtue of section 12AC(6) of TMA 1970,
an enquiry under paragraph 12 of Schedule 10 to FA 2003 (enquiries
into SDLT returns),
an enquiry under paragraph 8 of Schedule 33 to FA 2013 (enquiries into
annual tax for enveloped dwellings returns), or
(f) a deemed enquiry under subsection (6).
(3) The period during which an enquiry is in progress—
(a) begins with the day on which notice of enquiry is given, and
(b) ends with the day on which the enquiry is completed.
(4) Subsection (3) is subject to subsection (6).
(5) In the case of inheritance tax, each of the following is to be treated as a return—
an account delivered by a person under section 216 or 217 of IHTA 1984
(including an account delivered in accordance with regulations under
section 256 of that Act);
a statement or declaration which amends or is otherwise connected
with such an account produced by the person who delivered the
information or a document provided by a person in accordance with
regulations under section 256 of that Act;
and such a return is to be treated as made by the person in question.
An enquiry is deemed to be in progress, in relation to a return to which
subsection (5) applies, during the period which—
begins with the time the account is delivered or (as the case may be) the
statement, declaration, information or document is produced, and
ends when the person is issued with a certificate of discharge under
section 239 of that Act, or is discharged by virtue of section 256(1)(b) of
that Act, in respect of the return (at which point the enquiry is to be
treated as completed).
In this Part “tax appeal” means—
an appeal under section 31 of TMA 1970 (income tax: appeals against
amendments of self-assessment, amendments made by closure notices
under section 28A or 28B of that Act, etc), including an appeal under
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that section by virtue of regulations under Part 11 of ITEPA 2003
an appeal under paragraph 9 of Schedule 1A to TMA 1970 (income tax:
appeals against amendments made by closure notices under paragraph
7(2) of that Schedule, etc),
an appeal under section 705 of ITA 2007 (income tax: appeals against
an appeal under paragraph 34(3) or 48 of Schedule 18 to FA 1998
(corporation tax: appeals against amendment of a company’s return
made by closure notice, assessments other than self-assessments, etc),
an appeal under section 750 of CTA 2010 (corporation tax: appeals
against counteraction notices),
an appeal under section 222 of IHTA 1984 (appeals against HMRC
determinations) other than an appeal made by a person against a
determination in respect of a transfer of value at a time when a tax
enquiry is in progress in respect of a return made by that person in
respect of that transfer,
an appeal under paragraph 35 of Schedule 10 to FA 2003 (stamp duty
land tax: appeals against amendment of self-assessment, discovery
an appeal under paragraph 35 of Schedule 33 to FA 2013 (annual tax on
enveloped dwellings: appeals against amendment of self-assessment,
discovery assessments, etc), or
(i) an appeal against any determination of—
(i) an appeal within paragraphs (a) to (h), or
(ii) an appeal within this paragraph.
HMRC may give a notice (a “follower notice”) to a person (“P”) if Conditions
A to D are met.
(2) Condition A is that—
a tax enquiry is in progress into a return or claim made by P in relation
to a relevant tax, or
P has made a tax appeal (by notifying HMRC or otherwise) in relation
to a relevant tax, but that appeal has not yet been—
(i) determined by the tribunal or court to which it is addressed, or
(ii) abandoned or otherwise disposed of.
Condition B is that the return or claim or, as the case may be, appeal is made
on the basis that a particular tax advantage (“the asserted advantage”) results
from particular tax arrangements (“the chosen arrangements”).
Condition C is that HMRC is of the opinion that there is a judicial ruling which
is relevant to the chosen arrangements.
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Condition D is that no previous follower notice has been given to the same
person (and not withdrawn) by reference to the same tax advantage, tax
arrangements, judicial ruling and tax period.
A follower notice may not be given after the end of the period of 12 months
beginning with the later of—
the day on which the judicial ruling mentioned in Condition C is made,
the day the return or claim to which subsection (2)(a) refers was
received by HMRC or (as the case may be) the day the tax appeal to
which subsection (2)(b) refers was made.
(1) This section applies for the purposes of this Chapter.
(2) “Judicial ruling” means a ruling of a court or tribunal on one or more issues.
(3) A judicial ruling is “relevant” to the chosen arrangements if—
(a) it relates to tax arrangements,
the principles laid down, or reasoning given, in the ruling would, if
applied to the chosen arrangements, deny the asserted advantage or a
part of that advantage, and
(c) it is a final ruling.
(4) A judicial ruling is a “final ruling” if it is—
(a) a ruling of the Supreme Court, or
(b) a ruling of any other court or tribunal in circumstances where—
(i) no appeal may be made against the ruling,
if an appeal may be made against the ruling with permission,
the time limit for applications has expired and either no
application has been made or permission has been refused,
if such permission to appeal against the ruling has been granted
or is not required, no appeal has been made within the time
limit for appeals, or
if an appeal was made, it was abandoned or otherwise disposed
of before it was determined by the court or tribunal to which it
Where a judicial ruling is final by virtue of sub-paragraph (ii), (iii) or (iv) of
subsection (4)(b), the ruling is treated as made at the time when the sub-
paragraph in question is first satisfied.
A follower notice must—
identify the judicial ruling in respect of which Condition C in section
197 is met,
explain why HMRC considers that the ruling meets the requirements of
section 198(3), and
(c) explain the effects of sections 200 to 203.