Finance Bill

House of Commons

Session 2006 - 07
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Other Bills before Parliament

Finance Bill

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.”