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Finance Bill
Schedule 1 — Remote gaming duty
Part 1 — Imposition of duty

82

 

Schedules

Schedule 1

Section 8

 

Remote gaming duty

Part 1

Imposition of duty

5

1          

The sections set out below are to be inserted in Part 2 of BGDA 1981 (gaming

duties) before section 26A (which is renumbered 26N).

2          

Those sections are—

“Remote gaming duty

26A     

Interpretation

10

(1)   

For the purposes of remote gaming duty “remote gaming” means

gaming in which persons participate by the use of—

(a)   

the internet,

(b)   

telephone,

(c)   

television,

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(d)   

radio, or

(e)   

any other kind of electronic or other technology for

facilitating communication.

(2)   

For the purposes of remote gaming duty the expressions listed below

shall be construed (for the whole of the United Kingdom) in

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accordance with the Gambling Act 2005.

 

Expression

Defining provision of Gambling

 
  

Act 2005

 
 

Provision of facilities

Section 5(1) to (3)

 
 

Remote gambling equipment

Section 36(4) and (5)

 

25

 

Remote operating licence

Section 67

 

(3)   

In relation to remote gaming duty “P” means a person who provides

facilities for remote gaming.

(4)   

The Treasury may by order amend the definition of “remote gaming”

in subsection (1) (and an order may include incidental, consequential

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or transitional provision).

 

 

Finance Bill
Schedule 1 — Remote gaming duty
Part 1 — Imposition of duty

83

 

26B     

The duty

A duty of excise to be known as remote gaming duty shall be charged

on the provision of facilities for remote gaming if—

(a)   

the facilities are provided in reliance on a remote operating

licence, or

5

(b)   

at least one piece of remote gambling equipment used in the

provision of the facilities is situated in the United Kingdom

(whether or not the facilities are provided for use wholly or

partly in the United Kingdom).

26C     

The rate

10

(1)   

Remote gaming duty is chargeable at the rate of 15% of P’s remote

gaming profits for an accounting period.

(2)   

P’s remote gaming profits for an accounting period are—

(a)   

the amount of P’s remote gaming receipts for the period

(calculated in accordance with section 26E), minus

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(b)   

the amount of P’s expenditure for the period on remote

gaming winnings (calculated in accordance with section 26F).

26D     

Accounting periods

(1)   

The following are accounting periods for the purposes of remote

gaming duty—

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(a)   

the period of three months beginning with 1st January,

(b)   

the period of three months beginning with 1st April,

(c)   

the period of three months beginning with 1st July, and

(d)   

the period of three months beginning with 1st October.

(2)   

The Commissioners may agree with P for specified periods to be

25

treated as accounting periods, instead of those described in

subsection (1), for purposes of remote gaming duty relating to P.

(3)   

The Commissioners may by direction make transitional

arrangements for the periods to be treated as accounting periods

where—

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(a)   

P becomes registered, or ceases to be registered, under

section 26J, or

(b)   

an agreement under subsection (2) begins or ends.

26E     

Remote gaming receipts

(1)   

The amount of P’s remote gaming receipts for an accounting period

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is the aggregate of—

(a)   

amounts falling due to P in that period in respect of

entitlement to use facilities for remote gaming provided by P,

and

(b)   

amounts staked, or falling due to be paid, in that period by a

40

user of facilities for remote gaming provided by P, if or in so

far as responsibility for paying any amount won by the user

falls on P (or a person with whom P is connected or has made

arrangements).

(2)   

Amounts in respect of VAT shall be ignored for the purposes of

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subsection (1).

 

 

Finance Bill
Schedule 1 — Remote gaming duty
Part 1 — Imposition of duty

84

 

(3)   

The Treasury may by order provide that where a person who uses

facilities (U) relies on an offer which waives payment or permits

payment of less than the amount which would have been required to

be paid without the offer, U is to be treated for the purposes of this

section as having paid that amount.

5

26F     

Remote gaming winnings

(1)   

The amount of P’s expenditure on remote gaming winnings for an

accounting period is the aggregate of the value of prizes provided by

P in that period which have been won (at any time) by persons using

facilities for remote gaming provided by P.

10

(2)   

Prizes provided by P to one user on behalf of another are not to be

treated as prizes provided by P.

(3)   

A reference to providing a prize to a user (U) includes a reference to

crediting money in respect of gaming winnings by U to an account if

U is notified that—

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(a)   

the money is being held in the account, and

(b)   

U is entitled to withdraw it on demand.

(4)   

The return of a stake is to be treated as the provision of a prize.

(5)   

Where P participates in arrangements under which a number of

persons who provide facilities for remote gaming contribute towards

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a fund which is wholly used to provide prizes in connection with the

use of those facilities (sometimes described as arrangements for

“linked progressive jackpot games”)—

(a)   

the making by P of a contribution which relates to the

provision by P of facilities for remote gaming shall be treated

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as the provision of a prize, and

(b)   

the award of a prize from the fund shall not be treated as the

provision of a prize by P.

(6)   

Where P credits the account of a user of facilities provided by P

(otherwise than as described in subsection (3)), the credit shall be

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treated as the provision of a prize; but the Commissioners may direct

that this subsection shall not apply in a specified case or class of

cases.

(7)   

Subsections (2) to (6) of section 20 shall apply (with any necessary

modifications) for the purpose of remote gaming duty as for the

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purpose of bingo duty.

26G     

Losses

Where the calculation of P’s remote gaming profits for an accounting

period produces a negative amount, it may be carried forward in

reduction of the profits of one or more later accounting periods.

40

26H     

Exemptions

(1)   

Remote gaming duty shall not be charged in respect of the provision

of facilities for remote gaming if and in so far as—

(a)   

the provision is charged with another gambling tax, or

(b)   

the use of the facilities is charged with another gambling tax.

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Finance Bill
Schedule 1 — Remote gaming duty
Part 1 — Imposition of duty

85

 

(2)   

Remote gaming duty shall not be charged in respect of the provision

of facilities for remote gaming if and in so far as—

(a)   

the provision would be charged with another gambling tax

but for an express exception, or

(b)   

the use of the facilities would be charged with another

5

gambling tax but for an express exception.

(3)   

In this section “gambling tax” means—

(a)   

amusement machine licence duty,

(b)   

bingo duty,

(c)   

gaming duty,

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(d)   

general betting duty,

(e)   

lottery duty, and

(f)   

pool betting duty.

(4)   

The Treasury may by order—

(a)   

confer an exemption from remote gaming duty, or

15

(b)   

remove or vary (whether or not by textual amendment) an

exemption under this section.

(5)   

In calculating P’s remote gaming profits for an accounting period, no

account shall be taken of amounts or prizes if, or in so far as, they

relate to the provision of facilities to which an exemption applies

20

under or by virtue of this section.

26I     

Liability to pay

(1)   

P is liable for any remote gaming duty charged on P’s remote gaming

profits for an accounting period.

(2)   

If P is a body corporate, P and P’s directors are jointly and severally

25

liable for any remote gaming duty charged on P’s remote gaming

profits for an accounting period.

(3)   

The Commissioners may make regulations about payment of remote

gaming duty; and the regulations may, in particular, make provision

about—

30

(a)   

timing;

(b)   

instalments;

(c)   

methods of payment;

(d)   

when payment is to be treated as made;

(e)   

the process and effect of assessments by the Commissioners

35

of amounts due.

(4)   

Subject to regulations under subsection (3), section 12 of the Finance

Act 1994 (assessment) shall apply in relation to liability to pay

remote gaming duty.

26J     

Registration

40

(1)   

The Commissioners shall maintain a register of persons who provide

facilities for remote gaming in respect of which remote gaming duty

may be chargeable.

 

 

Finance Bill
Schedule 1 — Remote gaming duty
Part 1 — Imposition of duty

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(2)   

A person may not provide facilities for remote gaming in respect of

which remote gaming duty may be chargeable without being

registered.

(3)   

The Commissioners may make regulations about registration; in

particular, the regulations may include provision (which may

5

include provision conferring a discretion on the Commissioners)

about—

(a)   

the procedure for applying for registration;

(b)   

the timing of applications;

(c)   

the information to be provided;

10

(d)   

notification of changes;

(e)   

de-registration;

(f)   

re-registration after a person ceases to be registered.

(4)   

The regulations may require a registered person to give notice to the

Commissioners before applying for a remote operating licence.

15

(5)   

The regulations may permit the Commissioners to make registration,

or continued registration, of a foreign person conditional; and the

regulations may, in particular, permit the Commissioners to

require—

(a)   

the provision of security for payment of remote gaming duty;

20

(b)   

the appointment of a United Kingdom representative with

responsibility for discharging liability to remote gaming

duty.

(6)   

In subsection (5) “foreign person” means a person who—

(a)   

in the case of an individual, is not usually resident in the

25

United Kingdom,

(b)   

in the case of a body corporate, does not have an established

place of business in the United Kingdom, and

(c)   

in any other case, does not include an individual who is

usually resident in the United Kingdom.

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(7)   

The regulations may include provision for the registration of groups

of persons; and may provide for the modification of the provisions of

this Part about remote gaming duty in their application to groups.

(8)   

The regulations—

(a)   

may make provision which applies generally or only for

35

specified purposes, and

(b)   

may make different provision for different purposes.

26K     

Returns

(1)   

The Commissioners may make regulations requiring persons who

provide facilities for remote gaming in respect of which remote

40

gaming duty may be chargeable to make returns to the

Commissioners in respect of their activities.

(2)   

The regulations may, in particular, make provision about—

(a)   

liability to make a return;

(b)   

timing;

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(c)   

form;

 

 

Finance Bill
Schedule 1 — Remote gaming duty
Part 1 — Imposition of duty

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(d)   

content;

(e)   

method of making;

(f)   

declarations;

(g)   

authentication;

(h)   

when a return is to be treated as made.

5

(3)   

The regulations—

(a)   

may make provision which applies generally or only for

specified purposes, and

(b)   

may make different provision for different purposes.

26L     

Enforcement

10

(1)   

Contravention of a provision made by or by virtue of sections 26I to

26K—

(a)   

is conduct to which section 9 of the Finance Act 1994 applies

(penalties), and

(b)   

attracts daily penalties under that section.

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(2)   

A person who is knowingly concerned in, or in taking steps with a

view to, the fraudulent evasion of remote gaming duty commits an

offence.

(3)   

A person guilty of an offence under subsection (2) shall be liable on

summary conviction to—

20

(a)   

a penalty of—

(i)   

the statutory maximum, or

(ii)   

if greater, three times the duty which is unpaid or the

payment of which is sought to be avoided,

(b)   

imprisonment for a term not exceeding six months, or

25

(c)   

both.

(4)   

A person guilty of an offence under subsection (2) shall be liable on

conviction on indictment to—

(a)   

a penalty of any amount,

(b)   

imprisonment for a term not exceeding seven years, or

30

(c)   

both.

26M     

Review and appeal

(1)   

Sections 14 to 16 of the Finance Act 1994 (review and appeal) shall

apply in relation to liability to pay remote gaming duty.

(2)   

Sections 14 to 16 of that Act shall also apply to the decisions listed in

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subsection (3) below.

(3)   

Those decisions are—

(a)   

a decision to refuse a request for an agreement under section

26D(2),

(b)   

a decision to give a direction under section 26D(3),

40

(c)   

a decision not to give a direction under section 26D(3),

(d)   

a decision to direct that section 26F(6) shall not apply in a

specified case,

(e)   

a decision under regulations by virtue of section 26J(3), and

(f)   

a decision about security by virtue of section 26J(5)(a).

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Finance Bill
Schedule 2 — Climate change levy: reduced-rate supplies etc

88

 

(4)   

A decision of a kind specified in subsection (3) shall be treated as an

ancillary matter for the purposes of sections 14 to 16 of the Finance

Act 1994.”

Part 2

Consequential amendments

5

3          

In BGDA 1981, before section 26N (non-sterling amounts) (as renumbered

by paragraph 1 above) insert the italic cross-heading “General”.

4          

In section 31 of that Act (protection of officers), after “bingo duty” insert “,

remote gaming duty”.

5          

In section 32 of that Act (subordinate legislation), after subsection (2)

10

insert—

“(3)   

But in the case of an order under section 26H(4) which has the effect

of adding to the class of activities in respect of which remote gaming

duty is chargeable—

(a)   

subsection (2) above shall not apply, and

15

(b)   

the order may not be made unless a draft has been laid before

and approved by resolution of the House of Commons.”

6          

In section 33(2) of that Act (no legalising effect), after “bingo duty” insert “,

remote gaming duty”.

Schedule 2

20

Section 23

 

Climate change levy: reduced-rate supplies etc

Introductory

1          

Schedule 6 to FA 2000 (climate change levy) is amended as follows.

Reduced-rate supplies

2          

In paragraph 4(2)(b) (taxable supplies: introduction), after “paragraph 24”

25

insert “or 45A”.

3          

In paragraph 5(3) (supplies of electricity), for “or 24” substitute “, 24 or 45A”.

4          

In paragraph 6(2A) (supplies of gas), after “24” insert “or 45A”.

5     (1)  

Paragraph 34 (other commodities: deemed supplies) is amended as follows.

      (2)  

In sub-paragraph (1)(b), for “or 24” substitute “, 24 or 45A”.

30

      (3)  

After sub-paragraph (3) insert—

    “(4)  

A supply that is deemed to be made under paragraph 45A is

treated as taking place upon the later determination.”

6          

In paragraph 39(1)(c) (regulations as to time of supply), for “or 24” substitute

“, 24 or 45A”.

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