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Finance Bill
Part 1 — Excise duties

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       19               Bingo receipts

           (1)           A person has bingo receipts for an accounting period if payments fall

due in the period in respect of entitlement to participate in bingo

promoted by him.

           (2)           The amount of the person’s bingo receipts for the accounting period is

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the aggregate of those payments.

           (3)                         For the purposes of subsections (1) and (2)—

                  (a)                 an amount in respect of entitlement to participate in a game of

bingo is to be treated as falling due in the accounting period in

which the game is played,

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                  (b)                 it is immaterial whether an amount falls due to be paid to the

promoter or to another person,

                  (c)                 it is immaterial whether an amount is described as a fee for

participation, as a stake, or partly as one and partly as the other,

and

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                  (d)                 where a sum is paid partly in respect of entitlement to

participate in a game of bingo and partly in respect of another

matter—

                        (i)                        such part of the sum as is applied to, or properly

attributable to, entitlement to participate in the game

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shall be treated as an amount falling due in respect of

entitlement to participate in the game, and

                        (ii)                       the remainder shall be disregarded.

       20              Expenditure on bingo winnings

           (1)                         A person’s expenditure on bingo winnings for an accounting period is

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the aggregate of the values of prizes provided by him in that period by

way of winnings at bingo promoted by him.

           (2)           Where a prize is obtained by the promoter from a person not connected

with him, the cost to the promoter shall be treated as the value of the

prize for the purpose of subsection (1).

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           (3)           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 voucher may be used, and

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                  (c)                 does not fall within subsection (2),

                         the specified amount is the value of the voucher for the purpose of

subsection (1).

           (4)           Where a prize is a voucher (whether or not it falls within subsection (2))

it shall be treated as having no value for the purpose of subsection (1)

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if—

                  (a)                 it does not satisfy subsection (3)(a) and (b), or

                  (b)                 its use as described in subsection (3)(a) is subject to a specified

restriction, condition or limitation which may make the value of

the voucher to the recipient significantly less than the amount

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mentioned in subsection (3)(b).

           (5)           In the case of a prize which—

 

 

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                  (a)                 is neither money nor a voucher, and

                  (b)                 does not fall within subsection (2),

                         the value of the prize for the purpose of subsection (1) is—

                    (i)                   the amount which the prize would cost the promoter if

obtained from a person not connected with him, or

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                    (ii)                  where no amount can reasonably be determined in

accordance with sub-paragraph (i), nil.

           (6)           For the purpose of this section—

                  (a)                 a reference to connection between two persons shall be

construed in accordance with section 839 of the Income and

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Corporation Taxes Act 1988 (connected persons), and

                  (b)                 an amount paid by way of value added tax on the acquisition of

a thing shall 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).

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       20A            Combined bingo

           (1)           A game of bingo is “combined bingo” if—

                  (a)                 it is multiple bingo within the meaning of section 1 of the

Gaming (Bingo) Act 1985, or

                  (b)                 it is played in more than one place and promoted by more than

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one person.

           (2)           Payments made in respect of entitlement to participate in combined

bingo shall be treated for the purposes of section 19(1) as bingo receipts

only of the first promoter to whom (or at whose direction) they are

paid.

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           (3)           Where money representing stakes hazarded at combined bingo is paid

in an accounting period by one promoter of the bingo (“the first

promoter”) to another (“the second promoter”)—

                  (a)                 the money shall not be treated as a bingo receipt of the second

promoter for the purposes of section 19(1),

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                  (b)                 the payment shall be treated as expenditure of the first

promoter on bingo winnings for the accounting period for the

purposes of section 20(1), and

                  (c)                 no subsequent payment of all or part of the money shall be

treated as expenditure on bingo winnings for the purposes of

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section 20(1) (whether paid by the second promoter to another

person, by the first promoter having received it from the second

promoter, or otherwise).

           (4)           Subsections (2) and (3) shall apply only where the combined bingo is

played entirely in the United Kingdom.

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       20B               Carrying losses forward

           (1)           Where the calculation of a person’s bingo promotion profits for an

accounting period results in a negative amount (“the loss”)—

                  (a)                 no bingo duty shall be chargeable in respect of that accounting

period, and

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                  (b)                 for the purpose of section 17(3), the amount of the person’s

expenditure on bingo winnings for the next accounting period

shall be increased by the amount of the loss.

 

 

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           (2)           Subsection (1) applies to an accounting period whether or not the loss

results wholly or partly from the previous application of that

subsection.

       20C               Supplementary

           (1)           Part 2 of Schedule 3 to this Act (bingo duty: supplementary) shall have

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effect.

           (2)           In sections 17 to 20B above, this section and Schedule 3—

                                  “bingo” includes any version of that game, whatever name it is

called,

                                  “licensed bingo” means bingo played at premises licensed

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under—

                        (a)                        the Gaming Act 1968, or

                        (b)                        Chapter II of Part III of the Betting Gaming, Lotteries

and Amusements (Northern Ireland) Order 1985,

                                  “prize” means anything won at bingo, and

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                                  “United Kingdom” includes the territorial sea of the United

Kingdom.

           (3)           For the purposes of those provisions, except in relation to combined

bingo, the promoter of a game of bingo is—

                  (a)                 in the case of licensed bingo, the holder of the licence, and

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                  (b)                 in the case of non-licensed bingo, the person who provides the

facilities for the game.

           (4)           For the purposes of those provisions in relation to combined bingo a

person promotes a game of bingo if he is wholly or partly responsible

for organising it or for providing facilities for it.

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           (5)           In those provisions a reference to entitlement to participate in a game

of bingo includes a reference to an opportunity to participate in a game

of bingo in respect of which a charge is made (whether by way of a fee

for participation, a stake, or both).

           (6)           In proceedings relating to bingo duty under the customs and excise

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Acts an averment in any process that a particular game is a version of

bingo shall, until the contrary is proved, be sufficient evidence that it

is.”.

     (2)    In paragraph 1 of Schedule 3 to the Betting and Gaming Duties Act 1981 (c. 63)

(bingo duty: exemptions: domestic bingo) for “Bingo duty shall not be charged

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in respect of” substitute “In calculating liability to bingo duty no account shall

be taken of”.

     (3)    For paragraph 2 of Schedule 3 to the Betting and Gaming Duties Act 1981

(bingo duty: exemptions: small-scale bingo) substitute—

“Small-scale bingo

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        2               (1)                This paragraph applies where entitlement to participate in non-

licensed bingo depends on a person’s being—

                    (a)                   a member of a group or organisation,

                    (b)                   a guest of a member of a group or organisation, or

                    (c)                   a guest of a group or organisation.

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                       (2)                                Payments in respect of entitlement to participate in the non-licensed

bingo shall not be brought into account in relation to any person for

the purpose of section 19.

                       (3)                                Winnings at the non-licensed bingo shall not be brought into account

in relation to any person for the purpose of section 20.

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        2A               (1)                In the case of non-licensed bingo to which paragraph 2 does not

apply—

                    (a)                   payments in respect of entitlement to participate in the non-

licensed bingo shall not be brought into account in relation to

any person for the purpose of section 19 (subject to sub-

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paragraphs (2) to (5) below), and

                    (b)                   winnings at the non-licensed bingo shall not be brought into

account in relation to any person for the purpose of section 20

(subject to sub-paragraphs (2) to (5) below).

                       (2)                                If on a day winnings at non-licensed bingo promoted by a person

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exceed £500, sub-paragraph (1) shall not apply in relation to the

person in respect of the accounting period in which that day falls and

the next two accounting periods.

                       (3)                                If stakes exceeding in aggregate £500 are hazarded on a day at non-

licensed bingo promoted by a person, sub-paragraph (1) shall not

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apply in relation to the person in respect of the accounting period in

which that day falls and the next two accounting periods.

                       (4)                If in an accounting period winnings at non-licensed bingo promoted

by a person exceed £7,500, sub-paragraph (1) shall not apply in

relation to the person in respect of that accounting period and the

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next two accounting periods.

                       (5)                If stakes exceeding in aggregate £7,500 are hazarded in an

accounting period at non-licensed bingo promoted by a person, sub-

paragraph (1) shall not apply in relation to the person in respect of

that accounting period and the next two accounting periods.

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                       (6)                For the purposes of this paragraph winnings at bingo shall be valued

in accordance with section 20(2) to (6).”.

     (4)    After paragraph 2A of Schedule 3 to the Betting and Gaming Duties Act 1981

(c. 63) insert—

“Non-profit-making bingo

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        2B                In calculating liability to bingo duty no account shall be taken of

bingo to which there apply (without any exception or modification

by virtue of regulations) both—

                    (a)                   section 3 of the Gaming Act 1968 or Article 56 of the Betting,

Gaming, Lotteries and Amusements (Northern Ireland)

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Order 1985 (prohibition on charging for participation), and

                    (b)                   section 4 of that Act or Article 57 of that Order (prohibition of

levy on stakes or winnings).”.

     (5)    In paragraph 5(1) of Schedule 3 to the Betting and Gaming Duties Act 1981

(bingo duty: exemptions: commercial amusements) for “Bingo duty shall not

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be charged in respect of” substitute “In calculating liability to bingo duty no

account shall be taken of”.

 

 

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     (6)    In paragraph 6 of Schedule 3 to that Act (bingo duty: exemptions: machine

bingo) for “Bingo duty shall not be charged in respect of” substitute “In

calculating liability to bingo duty no account shall be taken of”.

     (7)    In paragraph 10(1) of Schedule 3 to that Act (notification and registration of

bingo-promoters) for “which will, or may, be chargeable with bingo duty”

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substitute “in connection with which bingo duty may be chargeable”.

     (8)    The following paragraphs of Schedule 3 to that Act shall cease to have effect—

           (a)           paragraph 11 (announcement of prizes),

           (b)           paragraph 12 (records), and

           (c)           paragraph 15 (disputes).

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     (9)    In paragraph 16(2) of Schedule 3 to that Act (enforcement)—

           (a)           for “(being bingo which is or may be chargeable with bingo duty)”

substitute “(being bingo in connection with which bingo duty may be

chargeable)”, and

           (b)           paragraph (b) (and the word “or” immediately before it) shall cease to

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have effect.

     (10)   This section shall have effect in relation to bingo played on or after 4th August

2003.

 10    Amusement machines not operated by coins or tokens

     (1)    In section 21 of the Betting and Gaming Duties Act 1981 (c. 63) (amusement

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machine licences), for subsections (3B) to (3D) (meaning of “fifty-penny

machine”) substitute—

           “(3B)              For the purposes of this section an amusement machine is a “fifty-

penny machine” if, and only if—

                  (a)                 where it is a machine on which a game can be played solo, the

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cost for each time the game is played on it solo—

                        (i)                        does not exceed 50p, or

                        (ii)                       where the machine provides differing numbers of

games in different circumstances, cannot exceed 50p;

                                      and

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                  (b)                 where it is a machine on which a game can be played by more

than one person at a time, the cost per player for each time the

game is played on it simultaneously by more than one player—

                        (i)                        does not exceed 50p, or

                        (ii)                       where the machine provides differing numbers of

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games in different circumstances, cannot exceed 50p.”.

     (2)    In section 25(1) of that Act (definition of “amusement machine”), in paragraph

(c) for “coin or token” substitute “coin, token or other thing”.

     (3)    In section 26(2) of that Act (interpretation), for the definitions of “two-penny

machine”, “five-penny machine” and “ten-penny machine” substitute—

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                    ““two-penny machine” means an amusement machine in relation to

which the cost for each time a game is played on it—

                    (a)                   does not exceed 2p, or

                    (b)                   where the machine provides differing numbers of games in

different circumstances, cannot exceed 2p,

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                                                                                                           and “five-penny machine” and “ten-penny machine” have a

corresponding meaning;”.

     (4)    In the following provisions of the Value Added Tax Act 1994 (c. 23)—

           (a)           the definition of “gaming machine” in section 23(4), and

           (b)           Note (3) (definition of “gaming machine”) to Group 4 of Schedule 9,

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            for “coin or token” substitute “coin, token or other thing”.

 11    Amusement machines: use of currencies other than sterling

     (1)    In section 26 of the Betting and Gaming Duties Act 1981 (c. 63) (interpretation

etc), omit the definition of “coin” in subsection (2).

     (2)    After that section insert—

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       “26A            Amounts in currencies other than sterling

           (1)           Any reference in this Part of this Act to a amount in sterling, in the

context of—

                  (a)                 the cost of playing a game, or

                  (b)                 the amount of the prize for a game,

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                         includes a reference to the equivalent amount in another currency.

           (2)           The equivalent amount in another currency, in relation to any day, shall

be determined by reference to the London closing exchange rate for the

previous day.

           (3)           For the purposes of determining what duty is payable on an

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amusement machine licence in a case where this section applies, the

equivalent in another currency of an amount in sterling shall be taken

to be its equivalent on the day on which the application for the licence

is received by the Commissioners, or the due date in the case of a

default licence.

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           (4)           In subsection (3) above—

                                  “default licence” means a licence granted under paragraph 3(1) of

Schedule 4A to this Act;

                                  “due date” has the meaning given by paragraph 2(4) of that

Schedule.”.

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     (3)    This section does not apply in relation to any amusement machine licence

granted before the day on which this Act is passed or to anything done under

such a licence.

 12    Responsibility for unlicensed amusement machines

     (1)    In section 24(5) of the Betting and Gaming Duties Act 1981 (penalty for

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unlicensed amusement machines), for paragraph (c) (liability of person

responsible for, inter alia, issuing or exchanging coins etc for amusement

machine) substitute—

                  “(c)                    is a person responsible for controlling the use of any

amusement machine on the premises, or”.

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     (2)    In Schedule 4A to that Act (unlicensed amusement machines), for paragraph

 

 

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(c) of paragraph 7(3) (which makes similar provision) substitute—

                    “(c)                      responsible for controlling the use of any amusement

machine on the premises, or”.

 13    Rates of gaming duty

     (1)    For the Table in section 11(2) of the Finance Act 1997 (c. 16) (rates of gaming

5

duty) substitute—


Table

 

Part of gross gaming yield

Rate

 
 

The first £502,500

2.5 per cent.

 

10

 

The next £1,115,500

12.5 per cent.

 
 

The next £1,115,500

20 per cent.

 
 

The next £1,953,000

30 per cent.

 
 

The remainder

40 per cent.

 

     (2)    This section has effect in relation to accounting periods beginning on or after

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1st April 2003.

Vehicle excise duty

 14    Vehicle excise duty: rates

     (1)    In paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994

(c. 22) (the general rate)—

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           (a)           in sub-paragraph (2) (general rate of duty except in case of vehicle with

engine with cylinder capacity not exceeding 1,549 cubic centimetres)

for “£160” substitute “£165”;

           (b)           in sub-paragraph (2A) (general rate of duty in case of vehicle with

engine with cylinder capacity not exceeding 1,549 cubic centimetres)

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for “£105” substitute “£110”.

     (2)    For the Table in paragraph 1B of that Schedule (rates of duty applicable to light

passenger vehicles registered on or after 1st March 2001 on basis of certificate

specifying CO2 emissions figure) substitute—

 

 

 
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