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Finance Bill
Schedule 24 — Penalties for errors
Part 5 — General

270

 

      (6)  

P may bring an appeal under paragraph 15 in respect of a partner’s penalty

(in addition to any appeal that P may bring in connection with the penalty

for which P is liable).

Double jeopardy

21         

P is not liable to a penalty under paragraph 1 or 2 in respect of an inaccuracy

5

or failure in respect of which P has been convicted of an offence.

Part 5

General

Interpretation

22         

Paragraphs 23 to 26 apply for the construction of this Schedule.

10

23         

HMRC means Her Majesty’s Revenue and Customs.

24         

An expression used in relation to income tax has the same meaning as in the

Income Tax Acts.

25         

An expression used in relation to corporation tax has the same meaning as

in the Corporation Tax Acts.

15

26         

An expression used in relation to capital gains tax has the same meaning as

in the enactments relating to that tax.

27         

An expression used in relation to VAT has the same meaning as in VATA

1994.

28         

In this Schedule—

20

(a)   

a reference to corporation tax includes a reference to tax or duty

which by virtue of an enactment is assessable or chargeable as if it

were corporation tax,

(b)   

a reference to tax includes a reference to construction industry

deductions under Chapter 3 of Part 3 of FA 2004,

25

(c)   

“direct tax” means—

(i)   

income tax,

(ii)   

capital gains tax, and

(iii)   

corporation tax,

(d)   

a reference to understating liability to VAT includes a reference to

30

overstating entitlement to a VAT credit,

(e)   

a reference to a loss includes a reference to a charge, expense, deficit

and any other amount which may be available for, or relied on to

claim, a deduction or relief,

(f)   

a reference to repayment of tax includes a reference to allowing a

35

credit,

(g)   

“tax period” means a tax year, accounting period or other period in

respect of which tax is charged,

(h)   

a reference to giving a document to HMRC includes a reference to

communicating information to HMRC in any form and by any

40

method (whether by post, fax, email, telephone or otherwise),

(i)   

a reference to giving a document to HMRC includes a reference to

making a statement or declaration in a document,

 

 

Finance Bill
Schedule 25 — Amendments connected with Gambling Act 2005
Part 1 — Amendments of the Tax Acts

271

 

(j)   

a reference to making a return or doing anything in relation to a

return includes a reference to amending a return or doing anything

in relation to an amended return, and

(k)   

a reference to action includes a reference to omission.

Consequential amendments

5

29         

The following provisions are omitted—

(a)   

sections 95, 95A, 97 and 98A(4) of TMA 1970 (incorrect returns and

accounts),

(b)   

sections 100A(1) and 103(2) of TMA 1970 (deceased persons),

(c)   

in Schedule 18 to FA 1998 (company tax returns), paragraphs 20 and

10

89 (company tax returns), and

(d)   

sections 60, 61, 63 and 64 of VATA 1994 (evasion).

30         

In paragraph 7 of Schedule 1 to the Social Security Contributions and

Benefits Act 1992 (c. 4) (penalties) a reference to a provision of TMA 1970

shall be construed as a reference to this Schedule so far as is necessary to

15

preserve its effect.

31         

In paragraph 7 of Schedule 1 to the Social Security Contributions and

Benefits (Northern Ireland) Act 1992 (c. 7) (penalties) a reference to a

provision of TMA 1970 shall be construed as a reference to this Schedule so

far as is necessary to preserve its effect.

20

Schedule 25

Section 104

 

Amendments connected with Gambling Act 2005

Part 1

Amendments of the Tax Acts

Exemption from corporation tax for profits of charitable companies from certain lotteries

25

1          

In section 505(1)(f) of ICTA (charitable companies: exemption for profits

from lotteries), for the words from “a lottery if” to the end substitute “a

lottery if the profits are applied solely to the charitable company’s purposes

and—

(i)   

the lottery is an exempt lottery within the meaning of

30

the Gambling Act 2005 by virtue of Part 1 or 4 of

Schedule 11 to that Act;

(ii)   

the lottery is promoted in accordance with a lottery

operating licence within the meaning of Part 5 of that

Act; or

35

(iii)   

the lottery is promoted and conducted in accordance

with Article 133 or 135 of the Betting, Gaming,

Lotteries and Amusements (Northern Ireland) Order

1985.”

 

 

Finance Bill
Schedule 25 — Amendments connected with Gambling Act 2005
Part 2 — Amendments of BGDA 1981

272

 

Exemption from income tax for profits of charitable trusts from certain lotteries

2          

In section 530(2) of ITA 2007 (charitable trusts: exemption for profits from

lotteries), for paragraph (a) (together with the “or” following it) substitute—

“(a)   

the lottery is an exempt lottery within the meaning of the

Gambling Act 2005 by virtue of Part 1 or 4 of Schedule 11 to

5

that Act,

(ab)   

the lottery is promoted in accordance with a lottery operating

licence within the meaning of Part 5 of that Act, or”.

Part 2

Amendments of BGDA 1981

10

Introductory

3          

BGDA 1981 is amended as follows.

Bookmakers: spread bets

4     (1)  

Section 3 (bookmakers: spread bets) is amended as follows.

      (2)  

In subsection (1), omit paragraph (b) (together with the “and” before it).

15

      (3)  

For subsection (2) substitute—

“(2)   

A bet is a spread bet if it constitutes a contract the making or

accepting of which is a regulated activity within the meaning of

section 22 of the Financial Services and Markets Act 2000.”

Liability to pay general betting duty

20

5          

In section 5B(3)(a) (liability to pay general betting duty), for “bookmaker’s

permit” substitute “general betting operating licence (in Great Britain), or a

bookmaker’s permit (in Northern Ireland),”.

Bet-brokers

6          

In section 5C(5) (bet-brokers: cases where section 5C does not apply), omit

25

paragraph (b) (together with the “or” before it).

Definitions for purposes of betting duties

7     (1)  

Section 12(4) (definitions for purposes of Part 1) is amended as follows.

      (2)  

In the definition of “betting office licence”, omit paragraph (a) (together with

the “and” following it).

30

      (3)  

In the definition of “bookmaker’s permit”, omit paragraph (a) (together with

the “and” following it).

      (4)  

After that definition insert—

““general betting operating licence” has the same meaning as in

Part 5 of the Gambling Act 2005 (see section 65(2)(c));”.

35

      (5)  

Omit the definitions of “meeting”, “totalisator” and “track”.

 

 

Finance Bill
Schedule 25 — Amendments connected with Gambling Act 2005
Part 2 — Amendments of BGDA 1981

273

 

Combined bingo

8          

In section 20A(1) (meaning of “combined bingo”), omit paragraph (a)

(together with the “or” following it).

Definitions for purposes of bingo duty

9     (1)  

Section 20C(2) (definitions for purposes of Part 2) is amended as follows.

5

      (2)  

After the definition of “bingo” insert—

““bingo premises licence” has the same meaning as in Part 8 of

the Gambling Act 2005 (see section 150(1)(b)),”.

      (3)  

For the definition of “licensed bingo” substitute—

““licensed bingo”—

10

(a)   

in Great Britain, means bingo played at premises

licensed under a bingo premises licence, and

(b)   

in Northern Ireland, means bingo played at premises

licensed under Chapter 2 of Part 3 of the Betting,

Gaming, Lotteries and Amusements (Northern

15

Ireland) Order 1985,”.

Definition of “gaming”

10         

In section 33(1) (interpretation of Act), for the definition of “gaming”

substitute—

““gaming” means playing a game of chance for a prize within

20

the meaning of Group 4 of Schedule 9 to the Value Added

Tax Act 1994;”.

Supplementary provisions as to betting duties

11    (1)  

Schedule 1 (enforcement) is amended as follows.

      (2)  

Omit paragraph 7 (production of documents etc relating to general betting

25

business or pool betting business).

      (3)  

In paragraph 15 (cancellation of betting office licence)—

(a)   

at the beginning insert—

   “(A1)  

This paragraph applies only in relation to premises in

Northern Ireland.”,

30

(b)   

in sub-paragraph (2), omit “in England or Wales or Northern

Ireland”,

(c)   

omit sub-paragraphs (3) to (4A), and

(d)   

in sub-paragraph (5), omit “in Northern Ireland”.

Exemptions from bingo duty

35

12    (1)  

Schedule 3 (exemptions from bingo duty) is amended as follows.

 

 

Finance Bill
Schedule 25 — Amendments connected with Gambling Act 2005
Part 3 — Amendments of FA 1993 relating to lottery duty

274

 

      (2)  

For paragraph 2B (and the italic cross-heading before it) substitute—

“Non-profit making bingo

2B    (1)  

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

non-profit making bingo.

      (2)  

“Non-profit making bingo” means bingo—

5

(a)   

in respect of the playing of which no charge in money or

money’s worth is made, and

(b)   

in respect of which no levy is charged on any of the stakes

or on the winnings of any of the players (irrespective of the

means by which the levy is charged),

10

           

and it does not matter whether the charge or levy is compulsory,

customary or voluntary.

      (3)  

In sub-paragraph (2)(a) “charge” includes an admission charge,

but does not include—

(a)   

any payment of the whole or any part of an annual

15

subscription to a club,

(b)   

any payment of an entrance subscription for membership

of a club, or

(c)   

any stakes hazarded.

      (4)  

In sub-paragraph (3)—

20

“club” means a club which is so constituted and conducted,

in respect of membership and otherwise, as not to be of a

temporary character, and

“membership of a club” does not include temporary

membership of a club.”

25

      (3)  

In paragraph 5(1) (small-scale amusements provided commercially)—

(a)   

in paragraph (a), for the words from “premises” to the end substitute

“family entertainment centre within the meaning of the Gambling

Act 2005 (see section 238);”, and

(b)   

in paragraph (b), for the words from “a permit” to “that Act”

30

substitute “an adult gaming centre premises licence issued under

Part 8 of the Gambling Act 2005 (see section 150(1)(c))”.

      (4)  

In paragraph 10(2) (notification to Commissioners by, and registration of,

bingo-promoters), in the second sentence, for “the Gaming Act 1968”

substitute “a bingo premises licence”.

35

Part 3

Amendments of FA 1993 relating to lottery duty

Introductory

13         

Chapter 2 of Part 1 of FA 1993 (lottery duty) is amended as follows.

Charge to lottery duty

40

14         

In section 24(4) (lotteries in respect of which lottery duty not chargeable)—

 

 

Finance Bill
Schedule 25 — Amendments connected with Gambling Act 2005
Part 4 — Amendments of FA 1997 relating to gaming duty

275

 

(a)   

in the opening words, for “not chargeable in respect” substitute “not

chargeable (in Great Britain) in respect of a lottery which is an

exempt lottery within the meaning of the Gambling Act 2005 (see

section 258) or (in Northern Ireland) in respect”,

(b)   

in paragraph (a), omit “the Lotteries and Amusements Act 1976 or”,

5

(c)   

in paragraph (b), omit “Act or”,

(d)   

in paragraph (c), omit “Act or” and “section 5(3) of that Act or”, and

(e)   

omit paragraph (d).

Disclosure of information

15         

In section 37 (disclosure of information to or by the Gaming Board for Great

10

Britain etc)—

(a)   

in subsection (1), for “Gaming Board for Great Britain” substitute

“Gambling Commission” and for “or Gaming Board” (in both places)

substitute “or Gambling Commission”, and

(b)   

in subsection (2), for “Gaming Board for Great Britain” substitute

15

“Gambling Commission” and for “or Gaming Board” substitute “or

Gambling Commission”.

Part 4

Amendments of FA 1997 relating to gaming duty

Introductory

20

16         

FA 1997 is amended as follows.

Charge to gaming duty

17    (1)  

Section 10 (charge to gaming duty) is amended as follows.

      (2)  

In subsection (3)—

(a)   

in paragraph (a), for “section 2(2) of the Gaming Act 1968” substitute

25

“Part 1 of Schedule 15 to the Gambling Act 2005”,

(b)   

in paragraph (b), for “section 6 of that Act” substitute “section 279 of

that Act”,

(c)   

omit paragraph (c),

(d)   

in paragraph (d), omit “section 41 of that Act or”, and

30

(e)   

in paragraph (e), for “section 15 or 16 of the Lotteries and

Amusements Act 1976” substitute “Part 13 of that Act”.

      (3)  

After that subsection insert—

“(3A)   

This section does not apply to any gaming taking place by means of

a machine that is an amusement machine for the purposes of the

35

Betting and Gaming Duties Act 1981.

(3B)   

This section does not apply to any lawful gaming which consists of

games played in Great Britain at an entertainment in respect of

which all the payments made by the players (whether by way of

entrance fee or stake or otherwise) are, after making permissible

40

deductions from those payments, applied for charitable purposes

only.

 

 

Finance Bill
Schedule 25 — Amendments connected with Gambling Act 2005
Part 4 — Amendments of FA 1997 relating to gaming duty

276

 

(3C)   

For the purposes of subsection (3B), only the following deductions

are permissible deductions—

(a)   

deductions on account of reasonable expenses incurred in

providing the facilities for the purposes of the games, and

(b)   

deductions for the provision of prizes or awards in respect of

5

the games.”

      (4)  

In subsection (4), for the words from “any gaming” to the end substitute

“any gaming which takes place on any premises in Great Britain of—

(a)   

a members’ club within the meaning of the Gambling Act

2005 (see section 266), or

10

(b)   

a miners’ welfare institute within the meaning of that Act

(see section 268).”

Banker’s profits from gaming

18    (1)  

Section 11 (rate of gaming duty) is amended as follows.

      (2)  

In paragraph (b) of subsection (10), for “the value, in money or money’s

15

worth, of the winnings paid” substitute “the value of the prizes provided”.

      (3)  

After that subsection insert—

“(10A)   

Subsections (2) to (6)(a) of section 20 of the Betting and Gaming

Duties Act 1981 (expenditure on bingo winnings: valuation of prizes)

apply, with any necessary modifications, for the purposes of gaming

20

duty as they apply for the purposes of bingo duty.”

      (4)  

In subsection (11), for “(10)” substitute “(10A)”.

Definition of “gaming”

19         

In section 15(3) (definitions for purposes of the gaming duty provisions), for

the definition of “gaming” substitute—

25

““gaming” has the same meaning as in the Betting and Gaming

Duties Act 1981 (see section 33(1));”.

Gaming Duty Register

20    (1)  

Schedule 1 (gaming duty: administration, enforcement etc) is amended as

follows.

30

      (2)  

In sub-paragraph (1) of paragraph 2 (interpretation), before the definition of

“the register” insert—

““casino premises licence” has the same meaning as in Part 8 of

the Gambling Act 2005 (see section 150(1)(a));

“club gaming permit” has the same meaning as in that Act (see

35

section 271);”.

      (3)  

In sub-paragraph (2) of that paragraph, for paragraphs (a) and (b)

substitute—

“(a)   

in respect of which a casino premises licence is for the time

being in force, or

40

(b)   

in respect of which a club gaming permit is for the time

being in force.”

 

 

 
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