120 Bank levy: miscellaneous changes
Schedule 26 contains miscellaneous changes to the bank levy.
Propose a changeLaw
Finance Act 2014
United Kingdom · statute
Ask the law about thisMore laws of United KingdomFor machines: Markdown
In force since 2026-06-25, as the publisher states.
Copy read on 2026-11-08. The page it was read from
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.
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Contents: 374 provisions
- Title and introductory text
- 1 Charge, rates, basic rate limit and personal allowance for 2014-15
- 2 Basic rate limit for 2015-16 and personal allowances from 2015
- 3 The starting rate for savings and the savings rate limit
- 4 Indexation of limits and allowances under ITA 2007
- 5 Charge for financial year 2015
- 6 Small profits rate and fractions for financial year 2014
- 7 Rates for ring fence profits and abolition of small profits rate for non-ring fence profits
- 8 Annual exempt amount for 2014-15
- 9 Annual exempt amount for 2015-16 onwards
- 10 Temporary increase in annual investment allowance
- 11 Tax relief for married couples and civil partners
- 12 Recommended medical treatment
- 13 Relief for loan interest: loan to buy interest in close company
- 14 Relief for loan interest: loan to buy interest in employee-controlled company
- 15 Restrictions on remittance basis
- 16 Treatment of agency workers
- 17 Recovery under PAYE regulations from certain company officers
- 18 Employment intermediaries: information powers and related penalties
- 19 Payments by employer on account of tax where deduction not possible
- 20 PAYE obligations of UK intermediary in cases involving non-UK employer
- 21 Oil and gas workers on the continental shelf: operation of PAYE
- 22 Threshold for benefit of loan to be treated as earnings
- 23 Taxable benefits: cars, vans and related benefits
- 24 Cars: the appropriate percentage
- 25 Cars and vans: payments for private use
- 26 Release of debts: stabilisation powers under Banking Act 2009
- 27 Holdings treated as rights under loan relationships
- 28 De-grouping charges (loan relationships etc)
- 29 Disguised distribution arrangements involving derivative contracts
- 30 Avoidance schemes involving the transfer of corporate profits
- 31 R&D tax credits for small or medium-sized enterprises
- 32 Film tax relief
- 33 Television tax relief: activities to be treated as separate trade
- 34 Video games development
- 35 Community amateur sports clubs
- 36 Tax relief for theatrical production
- 37 Changes in company ownership
- 38 Transfer of deductions: research and development allowances
- 39 Tax treatment of financing costs and income
- 40 Determination of beneficial entitlement for purposes of group relief
- 41 Pension flexibility: drawdown
- 42 Pension flexibility: taking low-value pension rights as lump sum
- 43 Pension flexibility: further amendments
- 44 Transitional provision for new standard lifetime allowance for 2014-15 etc
- 45 Taxable specific income: effect on pension input amount for non-UK schemes
- 46 Pension schemes
- 47 Glasgow Grand Prix
- 48 Major sporting events: power to provide for tax exemptions
- 49 Share incentive plans: increases in maximum annual awards etc
- 50 Share incentive plans: power to adjust maximum annual awards etc
- 51 Employee share schemes
- 52 Employment-related securities etc
- 53 Venture capital trusts
- 54 Removing time limit on seed enterprise investment scheme relief
- 55 Removing time limit on CGT relief in respect of re-investment under SEIS
- 56 Exclusion of incentivised electricity or heat generation activities
- 57 Relief for investments in social enterprises
- 58 Relief on disposal of private residence
- 59 Remittance basis and split year treatment
- 60 Termination of life interest and death of life tenant: disabled persons
- 61 Capital gains roll-over relief: relevant classes of assets
- 62 Capital gains roll-over relief: intangible fixed assets
- 63 Avoidance involving losses
- 64 Extension of capital allowances
- 65 General Block Exemption Regulation
- 66 Business premises renovation allowances
- 67 Mineral extraction allowances: activities not within charge to tax
- 68 Mineral extraction allowances: expenditure on planning permission
- 69 Extended ring fence expenditure supplement for onshore activities
- 70 Supplementary charge: onshore allowance
- 71 Oil and gas: reinvestment after pre-trading disposal
- 72 Substantial shareholder exemption: oil and gas
- 73 Oil contractor activities: ring-fence trade etc
- 74 Partnerships
- 75 Transfer pricing: restriction on claims for compensation adjustments
- 76 Rates of alcoholic liquor duties
- 77 Rates of tobacco products duty
- 78 Air passenger duty: rates of duty from 1 April 2014
- 79 Air passenger duty: rates of duty from 1 April 2015
- 80 Air passenger duty: adjustments to Part 3 of Schedule 5A to FA 1994
- 81 VED rates for light passenger vehicles, light goods vehicles, motorcycles etc
- 82 VED rates: rigid goods vehicle with trailers
- 83 VED rates: use for exceptional loads, rigid goods vehicles and tractive units
- 84 VED: extension of old vehicles exemption from 1 April 2014
- 85 VED: extension of old vehicles exemption from 1 April 2015
- 86 Abolition of reduced VED rates for meeting reduced pollution requirements
- 87 Six month licence: tractive units
- 88 Vehicles subject to HGV road user levy: amount of 6 month licence
- 89 Payment of vehicle excise duty by direct debit
- 90 Definition of “revenue weight”
- 91 Vehicle excise and registration: other provisions
- 92 HGV road user levy: rates tables
- 93 HGV road user levy: disclosure of information by HMRC
- 94 Aggregates levy: removal of certain exemptions
- 95 Aggregates levy: power to restore exemptions
- 96 Climate change levy: main rates for 2015-16
- 97 Climate change levy: carbon price support rates for 2014-15 and 2015-16
- 98 Climate change levy: carbon price support rates for 2016-17
- 99 Climate change levy: exemptions: mineralogical & metallurgical processes etc
- 100 Rates of landfill tax
- 101 Goods carried as stores
- 102 Penalties under section 26 of FA 2003: extension to excise duty
- 103 VAT: special schemes
- 104 VAT: place of belonging
- 105 VAT: place of supply orders: disapplication of transitional provision
- 106 VAT: supply of services through agents
- 107 VAT: refunds to health service bodies
- 108 VAT: prompt payment discounts
- 109 ATED: reduction in threshold from 1 April 2015
- 110 ATED: further reduction in threshold from 1 April 2016
- 111 SDLT: threshold for higher rate applying to certain transactions
- 112 SDLT: exercise of collective rights by tenants of flats
- 113 SDLT: charities relief
- 114 Abolition of SDRT on certain dealings in collective investment schemes
- 115 Abolition of stamp duty and SDRT: securities on recognised growth markets
- 116 Temporary statutory effect of House of Commons resolution
- 117 Inheritance tax
- 118 Gifts to the nation: estate duty
- 119 Bank levy: rates from 1 January 2014
- 120 Bank levy: miscellaneous changes
- 121 Rates of gaming duty
- 122 Rate of bingo duty
- 123 Exemption from bingo duty: small-scale amusements provided commercially
- 124 Rates of machine games duty
- 125 General betting duty
- 126 General bets
- 127 General betting duty charge on general bets
- 127A General betting duty charge on remote bets
- 128 Spread bets
- 129 General betting duty charge on financial spread bets
- 130 General betting duty charge on non-financial spread bets
- 131 Ordinary profits
- 132 Retained winnings profits
- 133 Bet-brokers
- 134 Chapter 1 pool bets
- 135 General betting duty charge on Chapter 1 pool bets
- 136 Profits on pooled stake Chapter 1 pool bets
- 137 Profits on ordinary Chapter 1 pool bets
- 138 Profits on retained winnings on Chapter 1 pool bets
- 139 Chapter 1: stake money
- 140 Chapter 1: winnings
- 141 General betting duty charge on betting exchanges
- 142 Liability to pay
- 143 Chapter 2 pool bets
- 144 Pool betting duty charge on Chapter 2 pool bets
- 145 Profits on pooled stake Chapter 2 pool bets
- 146 Profits on ordinary Chapter 2 pool bets
- 147 Profits on retained winnings on Chapter 2 pool bets
- 148 Chapter 2: stake money
- 149 Chapter 2: winnings
- 150 Payments treated as bets
- 151 Payment and recovery
- 152 Notification of reliance on community benefit exemption
- 153 Bets made for community benefit
- 154 Remote gaming
- 155 Remote gaming duty
- 156 Profits on pooled prize gaming
- 157 Profits on ordinary gaming
- 158 Profits on retained prizes
- 159 Gaming payments
- 159A Play using the results of successful freeplay
- 160 Prizes
- 160A Prizes: freeplay
- 161 Exemptions
- 162 Liability to pay
- 163 Administration
- 164 Registration
- 165 Accounting period
- 166 Returns
- 167 Payment
- 168 Information and records
- 169 Stake funds and gaming prize funds
- 170 Security for payment
- 171 Appointment of UK representative
- 172 Security and representatives: review and appeal
- 173 Offence of failing to provide security or appoint representative
- 174 Fraudulent evasion
- 175 Penalties under section 9 of FA 1994
- 176 Interest
- 177 Suspension and revocation of remote operating licences
- 178 Offences by bodies corporate
- 179 Protection of officers
- 180 Evidence by certificate, etc
- 181 Facilities capable of being used in United Kingdom: burden of proof
- 182 Review and appeal
- 183 Bet
- 184 Pool betting
- 185 Fixed odds
- 186 UK person
- 187 On-course betting and excluded betting
- 188 Gaming
- 189 Other definitions
- 190 Index
- 191 Amounts not in sterling
- 192 Limited liability partnerships
- 193 Effect of imposition of duties
- 194 Regulations
- 195 Notices
- 196 Consequential amendments and repeals
- 197 Transitional and saving provisions
- 198 Commencement and effect
- 199 Overview of Part 4
- 200 “Relevant tax”
- 201 “Tax advantage” and “tax arrangements”
- 202 “Tax enquiry” and “return”
- 203 “Tax appeal”
- 204 Circumstances in which a follower notice may be given
- 205 “Judicial ruling” and circumstances in which a ruling is “relevant”
- 206 Content of a follower notice
- 207 Representations about a follower notice
- 208 Penalty if corrective action not taken in response to follower notice
- 208A Additional penalty for unreasonable tax appeal
- 209 Amount of a section 208 or 208A penalty
- 210 Reduction of a section 208 penalty for co-operation
- 211 Assessment of a section 208 penalty
- 211A Assessment of a section 208A penalty
- 212 Aggregate penalties
- 213 Alteration of assessment of a section 208 or 208A penalty
- 214 Appeal against a section 208 penalty
- 214A Appeal against a section 208A penalty
- 215 Follower notices: treatment of partners and partnerships
- 216 Late appeal against final judicial ruling
- 217 Transitional provision
- 218 Defined terms used in Chapter 2
- 219 Circumstances in which an accelerated payment notice may be given
- 220 Content of notice given while a tax enquiry is in progress
- 221 Content of notice given pending an appeal
- 222 Representations about a notice
- 223 Effect of notice given while tax enquiry is in progress: accelerated payment
- 224 Restriction on powers to postpone tax payments pending initial appeal
- 225 Protection of the revenue pending further appeals
- 225A Effect of notice: surrender of losses ineffective, etc
- 226 Penalty for failure to pay accelerated payment
- 227 Withdrawal, modification or suspension of accelerated payment notice
- 227A Group relief claims after accelerated payment notices
- 228 Accelerated partner payments
- 229 Defined terms used in Chapter 3
- 230 Special case: stamp duty land tax
- 231 Special case: annual tax on enveloped dwellings
- 232 Extension of this Part by order
- 233 Consequential amendments
- 234 Meaning of “relevant proposal” and “relevant arrangements”
- 235 Carrying on a business “as a promoter”
- 236 Meaning of “intermediary”
- 236A Power to give stop notices
- 236B Effect of stop notices
- 236C Quarterly returns
- 236D Withdrawal of stop notices
- 236E Appeal against decision not to withdraw stop notice
- 236F Suspension of stop notice pending appeal
- 236G Automatic withdrawal of certain stop notices
- 236H Publication
- 236I Publication where stop notice automatically withdrawn
- 236J Disclosure to clients and intermediaries
- 236K Notification of interested persons by HMRC
- 237 Duty to give conduct notice
- 237A Duty to give conduct notice: defeat of promoted arrangements
- 237B Duty to give further conduct notice where provisional notice not complied with
- 237C When a conduct notice given under section 237A(8) is “provisional”
- 237D Judicial ruling upholding asserted tax advantage: effect on conduct notice which is provisional
- 238 Contents of a conduct notice
- 239 Section 238: supplementary
- 239A Conduct notices: transferees
- 240 Amendment , withdrawal or reissue of conduct notice
- 241 Duration of conduct notice
- 241A Defeat notices
- 241B Judicial ruling upholding asserted tax advantage: effect on defeat notice
- 242 Monitoring notices: duty to apply to tribunal
- 243 Monitoring notices: tribunal approval
- 244 Monitoring notices: content and issuing
- 244A Monitoring notices: transferees
- 245 Withdrawal of monitoring notice
- 246 Notification of determination under section 245
- 247 Appeal against refusal to withdraw monitoring notice
- 248 Publication by HMRC
- 249 Publication by monitored promoter
- 250 Allocation of promoter reference number
- 251 Duty of monitored promoter to notify clients etc of number
- 252 Duty of those notified to notify others of promoter's number
- 253 Duty of persons to notify the Commissioners
- 254 Meaning of “monitored proposal” and “monitored arrangements”
- 255 Power to obtain information and documents
- 256 Tribunal approval for certain uses of power under section 255
- 257 Ongoing duty to provide information following HMRC notice
- 258 Duty of person dealing with non-resident monitored promoter
- 259 Monitored promoters: duty to provide information about clients
- 260 Intermediaries etc: duty to provide information about clients
- 261 Enquiry following provision of client information
- 262 Information required for monitoring compliance with conduct notice
- 263 Duty to notify HMRC of address
- 264 Failure to provide information: application to tribunal
- 265 Duty to provide information to monitored promoter
- 266 Appeals against notices imposing information etc requirements
- 267 Form and manner of providing information
- 268 Production of documents: compliance
- 269 Exception for certain documents or information
- 270 Limitation on duty to produce documents
- 271 Legal professional privilege
- 272 Tax advisers
- 272A Application of Schedule 36 FA 2008 powers
- 273 Confidentiality
- 274 Penalties
- 275 Failure to comply with Part 7 of the Finance Act 2004
- 276 Limitation of defence of reasonable care
- 277 Extended time limit for assessment
- 277A Offences relating to stop notices
- 277B Liability for offences under section 277A committed by a body
- 278 Offence of concealing etc documents
- 279 Offence of concealing etc documents following informal notification
- 280 Penalties for offences
- 281 Partnerships
- 281A VAT and other indirect taxes
- 282 Regulations under this Part
- 283 Interpretation of this Part
- 284 Disclosure of tax avoidance schemes: information powers
- 285 The Code of Practice on Taxation for Banks: HMRC to publish reports
- 286 The Code of Practice on Taxation for Banks: “participating” groups or entities
- 287 The Code of Practice on Taxation for Banks: operation & breaches of the Code
- 288 The Code of Practice on Taxation for Banks: documents relating to the Code
- 289 Undertakings for collective investment in transferable securities and alternative investment funds
- 290 Companies owned by employee-ownership trusts
- 291 Trusts with vulnerable beneficiary: meaning of “disabled person”
- 292 Amounts allowed by way of double taxation relief
- 293 Controlled foreign companies: qualifying loan relationships (1)
- 294 Controlled foreign companies: qualifying loan relationships (2)
- 295 Tax consequences of financial sector regulation
- 296 Scottish basic, higher and additional rates of income tax
- 297 Report on administration of the Scottish rate of income tax
- 298 Co-operative societies etc
- 299 Removal of limitation period restriction for EU cases
- 300 Increase in limit for local loans
- 301 Power to update indexes of defined terms
- 302 Interpretation
- 303 Short title
- SCHEDULE 1 Corporation tax rates
- SCHEDULE 2 Annual investment allowance: transitional provisions etc
- SCHEDULE 3 Restrictions on remittance basis
- SCHEDULE 4 Tax relief for theatrical production
- SCHEDULE 5 Pension flexibility: further amendments
- SCHEDULE 6 Transitional provision relating to new standard lifetime allowance for the tax year 2014-15 etc
- SCHEDULE 7 Pension schemes
- SCHEDULE 8 Employee share schemes
- SCHEDULE 9 Employment-related securities etc
- SCHEDULE 10 Venture capital trusts
- SCHEDULE 11 Tax relief for social investments
- SCHEDULE 12 Investments in social enterprises: capital gains
- SCHEDULE 13 General Block Exemption Regulation
- SCHEDULE 15 Supplementary charge: onshore allowance
- SCHEDULE 16 Oil contractors: ring-fence trade etc
- SCHEDULE 17 Partnerships
- SCHEDULE 18 Abolition of reduced rates for vehicles satisfying reduced pollution requirements
- SCHEDULE 19 Other amendments about vehicle excise duty
- SCHEDULE 20 Climate change levy: exemptions for mineralogical and metallurgical processes etc
- SCHEDULE 21 Goods shipped or carried as stores on ships or aircraft
- SCHEDULE 23 SDLT: charities relief
- SCHEDULE 24 Abolition of stamp duty and SDRT: securities on recognised growth markets
- SCHEDULE 25 Inheritance tax
- SCHEDULE 26 The bank levy: miscellaneous changes
- SCHEDULE 27 Suspension and revocation of remote operating licences
- SCHEDULE 28 Part 3: consequential amendments and repeals
- SCHEDULE 29 Part 3: transitional and saving provisions
- SCHEDULE 30 Section 208 or 208A penalty: value of the denied advantage
- SCHEDULE 31 Follower notices and partnerships
- SCHEDULE 32 Accelerated payments and partnerships
- SCHEDULE 33 Part 4: consequential amendments
- SCHEDULE 33A Promotion structures
- SCHEDULE 34 Promoters of tax avoidance schemes: threshold conditions
- SCHEDULE 34A Promoters of tax avoidance schemes: defeated arrangements
- SCHEDULE 35 Promoters of tax avoidance schemes: penalties
- SCHEDULE 36 Promoters of tax avoidance schemes: partnerships
- SCHEDULE 37 Companies owned by employee-ownership trusts
- SCHEDULE 38 Scottish basic, higher and additional rates of income tax
- SCHEDULE 39 Taxation of co-operative societies etc
Proposed changes to this act
No one has proposed a change to this act yet.
374 provisions
121 Rates of gaming duty
(1) In section 11(2) of FA 1997 (rates of gaming duty) for the table substitute— TABLE Part of gross gaming yield | Rate The first £2,302,000 | 15 per cent The next £1,587,000 | 20 per cent The next £2,779,000 | 30 per cent The next £5,865,500 | 40 per cent The remainder | 50 per cent (2) The amendment made by this section has effect in relation to accounting periods beginning on or after 1 April 2014.
Propose a change122 Rate of bingo duty
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Propose a change123 Exemption from bingo duty: small-scale amusements provided commercially
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Propose a change124 Rates of machine games duty
(1) Schedule 24 to FA 2012 is amended as follows. (2) For paragraph 5 substitute— Types of machine 5 (1) Machines are divided into three types for the purposes of machine games duty. (2) A machine is a “type 1 machine” if it can be demonstrated that— (a) the highest charge payable for playing a dutiable machine game on the machine does not exceed 20p, and (b) the maximum amount of cash that can be won from playing a dutiable machine game on the machine does not exceed £10. (3) A machine is a “type 2 machine” if— (a) it is not a type 1 machine, and (b) it can be demonstrated that the highest charge payable for playing a dutiable machine game on the machine does not exceed £5. (4) Any other machine is a “type 3 machine”. (5) The Treasury may by order substitute for a sum for the time being specified in sub-paragraph (2)(a) or (b) or (3)(b) such higher sum as may be specified in the order. (3) For paragraph 6(2) substitute— (2) The amount of the duty is found by— (a) applying the lower rate to the person's total net takings in the accounting period for type 1 machines, (b) applying the standard rate to the person's total net takings in the accounting period for type 2 machines, (c) applying the higher rate to the person's total net takings in the accounting period for type 3 machines, and (d) aggregating the results. (4) For paragraph 9 substitute— The rates 9 (1) The lower rate is 5%. (2) The standard rate is 20%. (3) The higher rate is 25%. (4) If a rate changes during an accounting period— (a) the old rate is to be applied to the person's total net takings in the part of the period before the change, and (b) the new rate is to be applied to the person's total net takings in the part of the period after the change. (5) If it is not possible to identify for the purposes of sub-paragraph (4) the part of the period to which an amount relates, it is to be apportioned on a just and reasonable basis. (5) The Machine Games Duty (Types of Machine) Order 2014 (S.I. 2014/47) is revoked. (6) The amendments and revocation made by this section have effect in relation to the playing of machine games on or after 1 March 2015.
Propose a change125 General betting duty
A duty of excise, to be known as general betting duty, is charged in accordance with this Chapter.
Propose a change126 General bets
(1) A bet is a general bet for the purposes of this Part if— (a) it is not an on-course bet, (aa) it is not a remote bet, (b) it is not a spread bet, (c) it is not made by way of pool betting, and (d) one or more of conditions A to C is met in relation to it. (2) Condition A is that the person who makes the bet (whether as principal or agent) does so while present at a place in the United Kingdom where betting facilities are provided in the course of a business and the bet is made using those facilities. (3) Condition B is that— (a) the person who makes the bet as principal is a UK person, and (b) the bet is not an excluded bet. (4) Condition C is that— (a) the person who makes the bet as principal is a body corporate not legally constituted in the United Kingdom, (b) the bookmaker with whom the bet is made knows or has reasonable cause to believe that at least one potential beneficiary of any winnings from the bet is a UK person, and (c) the bet is not an excluded bet.
Propose a change127 General betting duty charge on general bets
(1) General betting duty is charged on a general bet made with a bookmaker. (2) It is charged at the rate of 15% of the bookmaker's profits on general bets for an accounting period. (3) The bookmaker's profits on general bets for an accounting period are the aggregate of— (a) the amount of the bookmaker's ordinary profits for the period in respect of general bets (calculated in accordance with section 131), and (b) the amount of the bookmaker's retained winnings profits for the period in respect of general bets (calculated in accordance with section 132). (4) Where the calculation for an accounting period under subsection (3) produces a negative amount— (a) the bookmaker's profits on general bets for the accounting period are treated as nil, and (b) the amount produced by the calculation may be carried forward in reduction of the bookmaker's profits on general bets for one or more later accounting periods.
Propose a change127A General betting duty charge on remote bets
(1) General betting duty is charged on a remote bet made with a bookmaker. (2) It is charged at the rate of 25% of the bookmaker’s profits on remote bets for an accounting period. (3) The bookmaker’s profits on remote bets for an accounting period are the aggregate of— (a) the amount of the bookmaker’s ordinary profits for the period in respect of remote bets (calculated in accordance with section 131), and (b) the amount of the bookmaker’s retained winnings profits for the period in respect of remote bets (calculated in accordance with section 132). (4) Where the calculation for an accounting period under subsection (3) produces a negative amount— (a) the bookmaker’s profits on remote bets for the accounting period are treated as nil, and (b) the amount produced by the calculation may be carried forward in reduction of the bookmaker’s profits on remote bets for one or more later accounting periods. (5) A bet is a remote bet for the purposes of this Part if— (a) it is made using remote communication, (b) it is not an on-course bet, a spread bet or made by way of pool betting, (c) it is not made using a self-service betting terminal, and (d) condition B or C in section 126 is met in relation to it. (6) The reference here to “remote communication” is to communication using— (a) the internet, (b) telephone, (c) television, (d) radio, or (e) any other kind of electronic or other technology for facilitating communication. (7) A bet is to be treated as not being a remote bet for the purposes of this Part if it is made wholly in relation to horse racing taking place in the United Kingdom. (8) In this section, “self-service betting terminal” means a machine which— (a) is designed or adapted for use to bet on future real events, (b) is not a gaming machine (within the meaning of section 235 of the Gambling Act 2005), and (c) is located on premises in respect of which there is a betting premises licence (within the meaning of section 150(1)(e) of the Gambling Act 2005) or a bookmaking office licence (within the meaning of Article 2(2) of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 (S.I. 1985/1204)). (9) The Treasury may by regulations amend subsection (6).
Propose a change128 Spread bets
(1) A bet is a spread bet for the purposes of this Part 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. (2) In this Part— “financial spread bet” means a spread bet the subject of which is a financial matter, and “non-financial spread bet” means any other spread bet. (3) The Commissioners may by regulations provide that a specified matter— (a) is to be treated as a financial matter for the purposes of subsection (2), or (b) is not to be treated as a financial matter for those purposes.
Propose a change129 General betting duty charge on financial spread bets
(1) General betting duty is charged on a financial spread bet made with a bookmaker who is in the United Kingdom. (2) It is charged at the rate of 3% of the bookmaker's profits on financial spread bets for an accounting period. (3) The bookmaker's profits on financial spread bets for an accounting period are the aggregate of— (a) the amount of the bookmaker's ordinary profits for the period in respect of financial spread bets (calculated in accordance with section 131), and (b) the amount of the bookmaker's retained winnings profits for the period in respect of financial spread bets (calculated in accordance with section 132). (4) Where the calculation for an accounting period under subsection (3) produces a negative amount— (a) the bookmaker's profits on financial spread bets for the accounting period are treated as nil, and (b) the amount produced by the calculation may be carried forward in reduction of the bookmaker's profits on financial spread bets for one or more later accounting periods.
Propose a change130 General betting duty charge on non-financial spread bets
(1) General betting duty is charged on a non-financial spread bet made with a bookmaker who is in the United Kingdom. (2) It is charged at the rate of 10% of the bookmaker's profits on non-financial spread bets for an accounting period. (3) The bookmaker's profits on non-financial spread bets for an accounting period are the aggregate of— (a) the amount of the bookmaker's ordinary profits for the period in respect of non-financial spread bets (calculated in accordance with section 131), and (b) the amount of the bookmaker's retained winnings profits for the period in respect of non-financial spread bets (calculated in accordance with section 132). (4) Where the calculation for an accounting period under subsection (3) produces a negative amount— (a) the bookmaker's profits on non-financial spread bets for the accounting period are treated as nil, and (b) the amount produced by the calculation may be carried forward in reduction of the bookmaker's profits on non-financial spread bets for one or more later accounting periods.
Propose a change131 Ordinary profits
Take the following steps to calculate the amount of a bookmaker's ordinary profits in respect of a class of bets for an accounting period. Step 1 Calculate the aggregate of the stake money falling due to the bookmaker in the accounting period in respect of bets of that class made with the bookmaker. Step 2 Calculate the aggregate of the amounts paid by the bookmaker in that period by way of winnings to persons who made bets of that class with the bookmaker (irrespective of when the bets were made or determined). Step 3 Subtract the amount calculated under Step 2 from the amount calculated under Step 1.
Propose a change132 Retained winnings profits
(1) The amount of a bookmaker's retained winnings profits in respect of a class of bets for an accounting period is the aggregate of amounts which cease to be qualifying amounts in the accounting period. (2) An amount is a qualifying amount for the purposes of this section if, as a result of a person (“P”) being notified as mentioned in section 140(2)(b), it has been taken into account in calculating the bookmaker's ordinary profits for bets of that class in any accounting period. (3) An amount ceases to be a qualifying amount for the purposes of this section if, otherwise than by virtue of being withdrawn by P as mentioned in section 140(2)(b), P ceases to be entitled to withdraw it. (4) The Commissioners may by notice published by them direct that subsection (3) is not to apply in a specified case or class of cases.
Propose a change133 Bet-brokers
(1) This section applies where— (a) one person (the “bettor”) makes a bet with another person (the “bet-taker”) using facilities provided in the course of a business, other than a betting exchange business, by a third person (the “bet-broker”), or (b) one person (the “bet-broker”) in the course of a business makes a bet with another person (the “bet-taker”) as the agent of a third person (the “bettor”) (whether the bettor is a disclosed principal or an undisclosed principal). (2) For the purposes of sections 126 to 132— (a) the bet is to be treated as if it were made separately by the bettor with the bet-broker and by the bet-broker with the bet-taker, (b) the bet-broker is to be treated as a bookmaker in respect of the bet, (c) the aggregate of amounts due to be paid by the bettor in respect of the bet is to be treated as being due separately to the bet-broker and to the bet-taker (and any amount due to be paid by the bet-broker to the bet-taker is to be disregarded), and (d) a sum paid by the bet-taker by way of winnings in respect of the bet is to be treated as having been paid separately by the bet-taker and by the bet-broker at that time and for that purpose (and any sum paid by the bet-broker is to be disregarded). (3) Where there is any doubt as to which of two persons is the bettor and which the bet-taker for the purposes of subsection (1)(a), whichever of the two was the first to use the facilities of the bet-broker to offer the bet is to be treated as the bet-taker. (4) In this section “betting exchange business” means a business such as is mentioned in section 141(1).
Propose a change134 Chapter 1 pool bets
(1) A bet is a “Chapter 1 pool bet” for the purposes of this Part if— (a) it relates only to horse racing or dog racing, (b) it is not an on-course bet, (c) it is made by way of pool betting, and (d) one or more of conditions A to C is met in relation to it. (2) Condition A is that the person who makes the bet (whether as principal or agent) does so while present at a place in the United Kingdom where betting facilities are provided in the course of a business and the bet is made using those facilities. (3) Condition B is that— (a) the person who makes the bet as principal is a UK person, and (b) the bet is not an excluded bet. (4) Condition C is that— (a) the person who makes the bet as principal is a body corporate not legally constituted in the United Kingdom, (b) the bookmaker with whom the bet is made knows or has reasonable cause to believe that at least one potential beneficiary of any winnings from the bet is a UK person, and (c) the bet is not an excluded bet. (5) A Chapter 1 pool bet is a “pooled stake Chapter 1 pool bet” for the purposes of this Part if all or any part of the stake money on the bet is assigned by or on behalf of the bookmaker with whom it is made to a fund (referred to in this Part as a “Chapter 1 stake fund”) from which winnings are to be paid in respect of pool betting. (6) A Chapter 1 pool bet is an “ordinary Chapter 1 pool bet” for the purposes of this Part if it is not a pooled stake Chapter 1 pool bet.
Propose a change135 General betting duty charge on Chapter 1 pool bets
(1) General betting duty is charged on a Chapter 1 pool bet made with a bookmaker. (2) It is charged at the rate of 15% of the bookmaker's profits on Chapter 1 pool bets for an accounting period. (3) The bookmaker's profits on Chapter 1 pool bets for an accounting period are the aggregate of— (a) the amount of the bookmaker's profits for the period in respect of pooled stake Chapter 1 pool bets (calculated in accordance with section 136), and (b) the amount of the bookmaker's profits for the period in respect of ordinary Chapter 1 pool bets (calculated in accordance with section 137), and (c) the amount of the bookmaker's profits for the period in respect of retained winnings on Chapter 1 pool bets (calculated in accordance with section 138). (4) Where the calculation for an accounting period under subsection (3) produces a negative amount— (a) the bookmaker's profits on Chapter 1 pool bets for the accounting period are treated as nil, and (b) the amount produced by the calculation may be carried forward in reduction of the bookmaker's profits on Chapter 1 pool bets for one or more later accounting periods.
Propose a change136 Profits on pooled stake Chapter 1 pool bets
(1) Take the following steps to calculate the amount of a bookmaker's profits for an accounting period in respect of pooled stake Chapter 1 pool bets. Step 1 Take the aggregate of the relevant stake money falling due to the bookmaker in the accounting period and deduct the aggregate of any of that stake money that is assigned by or on behalf of the bookmaker to Chapter 1 stake funds during the period. Step 2 If in the accounting period any amount contained in a Chapter 1 stake fund to which relevant stake money has been assigned by or on behalf of the bookmaker is used otherwise than to provide winnings to persons who made bets by way of pool betting, multiply each amount so used in the accounting period by the relevant proportion that applies in relation to it. Step 3 Add the aggregate of the amounts calculated under Step 2 to the amount calculated under Step 1. Step 4 If in the accounting period any top-up payment is assigned to a Chapter 1 stake fund by the bookmaker, multiply the amount of each top-up payment so assigned in the accounting period by the appropriate proportion that applies in relation to it. Step 5 Subtract the aggregate of the amounts calculated under Step 4 from the amount calculated under Step 3. (2) For the purposes of Step 2 the relevant proportion, in relation to any amount which is used otherwise than to provide winnings, is— (a) if the amount relates to bets on a specific event, the proportion of that amount that consists of relevant stake money that fell due to the bookmaker in respect of the bets, (b) if the amount does not relate to bets on a specific event but relates to amounts assigned to the fund during a specific period, the proportion of that amount that consists of relevant stake money assigned to the fund by or on behalf of the bookmaker during that period, and (c) in any other case, the proportion of the total amount contained in the fund immediately before the amount is so used which consists of relevant stake money assigned to the fund by or on behalf of the bookmaker. (3) For the purposes of Step 4— (a) a top-up payment is assigned to a Chapter 1 stake fund if the bookmaker assigns an amount (other than stake money on a bet) to the fund to satisfy a guarantee given by the bookmaker that a specified minimum amount of winnings will be available in respect of bets made with the bookmaker, and (b) the appropriate proportion, in relation to such a payment, is the proportion determined in accordance with a notice published by the Commissioners. (4) A notice under subsection (3)(b) may provide for top-up payments to be ignored for the purposes of Step 4 in a specified case or class of cases. (5) In this section “relevant stake money” means stake money in respect of a pooled stake Chapter 1 pool bet.
Propose a change137 Profits on ordinary Chapter 1 pool bets
To calculate the amount of a bookmaker's profits for an accounting period in respect of ordinary Chapter 1 pool bets— (a) take the aggregate of the stake money falling due to the bookmaker in the accounting period in respect of such bets, and (b) subtract the aggregate of the expenditure by or on behalf of the bookmaker for the period on winnings in respect of such bets.
Propose a change138 Profits on retained winnings on Chapter 1 pool bets
(1) The amount of a bookmaker's profits for an accounting period in respect of retained winnings on Chapter 1 pool bets is the aggregate of the amounts which cease to be qualifying amounts in the accounting period. (2) An amount is a qualifying amount for the purposes of this section if, as a result of a person (“P”) being notified as mentioned in section 140(2)(b), it has been taken into account in calculating the bookmaker's profits for any accounting period under section 136 or 137. (3) An amount ceases to be a qualifying amount for the purposes of this section if, otherwise than by virtue of being withdrawn from the account by P as mentioned in section 140(2)(b), P ceases to be entitled to withdraw it. (4) The Commissioners may by notice published by them direct that subsection (3) is not to apply in a specified case or class of cases.
Propose a change139 Chapter 1: stake money
(1) For the purposes of this Chapter the stake money on a bet is the aggregate of the amounts which fall due in respect of the bet. (2) If the stake money falls due to a person other than the bookmaker with whom the bet is made, it is to be treated as falling due to the bookmaker. (3) Where the bet is not a spread bet and the sum which the person who makes the bet will lose if unsuccessful is known when the bet is made, that sum is to be treated as falling due when the bet is made (irrespective of when it is actually paid or required to be paid). (4) Where the person who makes the bet does so in pursuance of an offer which permits the person to pay nothing or less than the amount which the person would have been required to pay without the offer, the person is to be treated as being due to pay that amount— (a) to the bookmaker with whom the bet is made, and (b) at the time when the bet is made. (5) All payments made— (a) for or on account of or in connection with the bet, (b) in addition to amounts falling due in respect of the bet, and (c) by the person making the bet, are to be treated as amounts due in respect of the bet except so far as the contrary is proved by the bookmaker whose profits on the bet are being calculated. (6) In calculating any amount falling due in respect of the bet, no deduction is to be made in respect of— (a) any other benefit secured by the person who makes the bet as a result of paying the money, (b) a person's expenses, whether in paying duty or otherwise, or (c) any other matter.
Propose a change140 Chapter 1: winnings
(1) Only winnings in the form of money are to be taken into account when determining for the purposes of this Chapter what are winnings on a bet. (2) For those purposes, winnings on a bet include— (a) the return of a stake on the bet, and (b) any winnings on the bet held in an account for a person (“P”) if P is notified that the amount is being held in the account and may be withdrawn by P on demand. (3) The Commissioners may by regulations make provision as to when, for the purposes of any calculation under this Chapter— (a) winnings are to be treated as paid or provided, and (b) expenditure on winnings is to be treated as incurred.
Propose a change141 General betting duty charge on betting exchanges
(1) This section applies where— (a) one person makes a bet with another person using facilities provided by a third person in the course of a business, and (b) that business is one that does not involve the provision of premises for use by persons making or taking bets. (2) General betting duty is charged on the amounts (“commission charges”) that any party to the bet who is a UK person is charged, whether by deduction from winnings or otherwise, for using those facilities. (3) No deductions are allowed from commission charges. (4) The amount of duty charged under this section in respect of bets determined in an accounting period is 15% of the commission charges relating to those bets. (5) Where a person arranges for facilities relating to a bet to be provided by another person, the facilities are to be treated for the purposes of this section and section 142(4) as provided by the person who makes the arrangements instead of by the person who provides the facilities. (6) For the purposes of this section it does not matter— (a) whether the bet is made in the United Kingdom or elsewhere; (b) whether the facilities are in the United Kingdom or elsewhere.
Propose a change142 Liability to pay
(1) All general betting duty chargeable in respect of— (a) bets made in an accounting period, or (b) in the case of duty chargeable under section 141, bets determined in an accounting period, becomes due at the end of that period. (2) In the case of bets made with a bookmaker in an accounting period the general betting duty is to be paid— (a) when it becomes due, and (b) by the bookmaker. (3) But general betting duty which is due to be paid by a bookmaker in respect of bets may be recovered from the following persons as if they and the bookmaker were jointly and severally liable to pay the duty— (a) the holder of any licence which authorises— (i) the provision of facilities for betting by the business in the course of which the bets were made, or (ii) betting at the place where the bets were made; (b) a person responsible for the management of the business mentioned in paragraph (a)(i); (c) where the bookmaker is a company, a director. (4) In the case of bets made in an accounting period by means of facilities provided by a person as described in section 141 the general betting duty is to be paid— (a) when it becomes due, and (b) by the person who provides the facilities.
Propose a change143 Chapter 2 pool bets
(1) A bet is a Chapter 2 pool bet for the purposes of this Part if— (a) it is not made wholly in relation to horse racing or dog racing, (b) it is not made for community benefit, (c) it does not constitute the taking of a ticket or chance in a lottery, (d) it is made by way of pool betting, and (e) one or more of conditions A to C is met in relation to it. (2) Condition A is that the person who makes the bet (whether as principal or agent) does so while present at a place in the United Kingdom where betting facilities are provided in the course of a business and the bet is made using those facilities. (3) Condition B is that— (a) the person who makes the bet as principal is a UK person, and (b) the bet is not an excluded bet. (4) Condition C is that— (a) the person who makes the bet as principal is a body corporate not legally constituted in the United Kingdom, (b) the bookmaker with whom the bet is made knows or has reasonable cause to believe that at least one potential beneficiary of any winnings from the bet is a UK person, and (c) the bet is not an excluded bet. (5) A Chapter 2 pool bet is a “pooled stake Chapter 2 pool bet” for the purposes of this Part if all or any part of the stake money on the bet is assigned by or on behalf of the bookmaker with whom the bet is made to a fund (referred to in this Part as a “Chapter 2 stake fund”) from which winnings are to be paid in respect of pool betting. (6) A Chapter 2 pool bet is an “ordinary Chapter 2 pool bet” for the purposes of this Part if it is not a pooled stake Chapter 2 pool bet.
Propose a change144 Pool betting duty charge on Chapter 2 pool bets
(1) A duty of excise, to be known as pool betting duty, is charged on a Chapter 2 pool bet made with a bookmaker. (2) It is charged at the rate of 15% of the bookmaker's profits on Chapter 2 pool bets for an accounting period. (3) The bookmaker's profits on Chapter 2 pool bets for an accounting period are the aggregate of— (a) the amount of the bookmaker's profits for the period in respect of pooled stake Chapter 2 pool bets (calculated in accordance with section 145), (b) the amount of the bookmaker's profits for the period in respect of ordinary Chapter 2 pool bets (calculated in accordance with section 146), and (c) the amount of the bookmaker's profits for the period in respect of retained winnings on Chapter 2 pool bets (calculated in accordance with section 147). (4) Where the calculation for an accounting period under subsection (3) produces a negative amount— (a) the bookmaker's profits on Chapter 2 pool bets for the accounting period are treated as nil, and (b) the amount produced by the calculation may be carried forward in reduction of the bookmaker's profits on Chapter 2 pool bets for one or more later accounting periods.
Propose a change145 Profits on pooled stake Chapter 2 pool bets
(1) Take the following steps to calculate the amount of a bookmaker's profits for an accounting period in respect of pooled stake Chapter 2 pool bets. Step 1 Take the aggregate of the relevant stake money falling due to the bookmaker in the accounting period and deduct the aggregate of any of that stake money that is assigned by or on behalf of the bookmaker to Chapter 2 stake funds during the period. Step 2 If in the accounting period any amount contained in a Chapter 2 stake fund to which relevant stake money has been assigned by or on behalf of the bookmaker is used otherwise than to provide winnings to persons who made bets by way of pool betting, multiply each amount so used in the accounting period by the relevant proportion that applies in relation to it. Step 3 Add the aggregate of the amounts calculated under Step 2 to the amount calculated under Step 1. Step 4 If in the accounting period any top-up payment is assigned to a Chapter 2 stake fund by the bookmaker, multiply the amount of each top-up payment so assigned in the accounting period by the appropriate proportion that applies in relation to it. Step 5 Subtract the aggregate of the amounts calculated under Step 4 from the amount calculated under Step 3. (2) For the purposes of Step 2 the relevant proportion, in relation to any amount which is used otherwise than to provide winnings, is— (a) if the amount relates to bets on a specific event, the proportion of that amount that consists of relevant stake money that fell due to the bookmaker in respect of the bets, (b) if the amount does not relate to bets on a specific event but relates to amounts assigned to the fund during a specific period, the proportion of that amount that consists of relevant stake money assigned to the fund by or on behalf of the bookmaker during that period, and (c) in any other case, the proportion of the total amount contained in the fund immediately before the amount is so used which consists of relevant stake money assigned to the fund by or on behalf of the bookmaker. (3) For the purposes of Step 4— (a) a top-up payment is assigned to a Chapter 2 stake fund if the bookmaker assigns an amount (other than stake money on a bet) to the fund to satisfy a guarantee given by the bookmaker that a specified minimum amount of winnings will be available in respect of bets made with the bookmaker, and (b) the appropriate proportion, in relation to such a payment, is the proportion determined in accordance with a notice published by the Commissioners. (4) A notice under subsection (3)(b) may provide for top-up payments to be ignored for the purposes of Step 4 in a specified case or class of cases. (5) In this section “relevant stake money” means stake money in respect of a pooled stake Chapter 2 pool bet.
Propose a change146 Profits on ordinary Chapter 2 pool bets
To calculate the amount of a bookmaker's profits for an accounting period in respect of ordinary Chapter 2 pool bets— (a) take the aggregate of the stake money falling due to the bookmaker in the accounting period in respect of such bets, and (b) subtract the aggregate of the expenditure by or on behalf of the bookmaker for the period on winnings in respect of such bets.
Propose a change147 Profits on retained winnings on Chapter 2 pool bets
(1) The amount of a bookmaker's profits for an accounting period in respect of retained winnings on Chapter 2 pool bets is the aggregate of the amounts which cease to be qualifying amounts during the accounting period. (2) An amount is a qualifying amount for the purposes of this section if, as a result of a person (“P”) being notified as mentioned in section 149(2)(b), it has been taken into account in calculating the bookmaker's profits for any accounting period under section 145 or 146. (3) An amount ceases to be a qualifying amount for the purposes of this section if, otherwise than by virtue of being withdrawn by P as mentioned in section 149(2)(b), P ceases to be entitled to withdraw it. (4) The Commissioners may by notice published by them direct that subsection (3) is not to apply in a specified case or class of cases.
Propose a change148 Chapter 2: stake money
(1) For the purposes of this Chapter the stake money on a bet is the aggregate of the amounts which fall due in respect of the bet. (2) If the stake money falls due to a person other than the bookmaker with whom the bet is made, it is to be treated as falling due to the bookmaker. (3) Any payment that entitles a person to make the bet is, if the person makes the bet, to be treated as an amount falling due in respect of the bet. (4) All payments made— (a) for or on account of or in connection with the bet, (b) in addition to amounts falling due in respect of the bet, and (c) by the person making the bet, are to be treated as amounts due in respect of the bet except so far as the contrary is proved by the bookmaker whose profits on the bet are being calculated. (5) Subsections (6) and (7) apply for the purposes of subsection (1) but have effect subject to any regulations under subsection (8). (6) Where— (a) a person makes a bet, and (b) the bet relates to a single event, or to two or more events taking place on the same day, any sum due to the bookmaker in respect of the bet is treated as falling due on the day on which the event or events take place. (7) Where— (a) a person makes a bet, and (b) subsection (6) does not apply, any sum due to the bookmaker in respect of the bet is treated as falling due when the bet is made. (8) The Commissioners may by regulations make provision as to when any sum due to the bookmaker in respect of a bet is to be treated as falling due. (9) Provision made by regulations under subsection (8) may not provide for a sum due to the bookmaker in respect of a bet to be treated as falling due— (a) earlier than when the bet is made, or (b) later than when the bet is determined.
Propose a change149 Chapter 2: winnings
(1) Only winnings in the form of money are to be taken into account when determining for the purposes of this Chapter what are winnings on a bet. (2) For those purposes, winnings on a bet include— (a) the return of a stake on the bet, and (b) any winnings on the bet held in an account for a person (“P”) if P is notified that the amount is being held in the account and may be withdrawn by P on demand. (3) Winnings on a bet for which no stake money fell due are to be ignored for the purposes of any calculation under this Chapter. (4) The Commissioners may by regulations make provision as to when, for the purposes of any calculation under this Chapter— (a) winnings are to be treated as paid or provided, and (b) expenditure on winnings is to be treated as incurred.
Propose a change150 Payments treated as bets
(1) Where payments are made for the chance of winning any money or money's worth on terms under which the persons making the payments have a power of selection that may (directly or indirectly) determine the winner, those payments are (subject to section 183) to be treated as bets for the purposes of this Chapter even if the power is not exercised. (2) Where any payment entitles a person to take part in a transaction that is, on the person's part only, not a bet made by way of pool betting by reason of the person not in fact making any stake as if the transaction were such a bet, the transaction is to be treated as such a bet for the purposes of this Chapter (and section 148(4) applies to any such payment).
Propose a change151 Payment and recovery
(1) Pool betting duty charged on a bookmaker's profits on Chapter 2 pool bets for an accounting period— (a) becomes due at the end of the period, (b) is to be paid by the bookmaker, and (c) is to be paid when it becomes due. (2) Pool betting duty that is due to be paid may be recovered from the following persons as if they were jointly and severally liable to pay the duty— (a) the bookmaker; (b) a person responsible for the management of any business in the course of which any bets have been made that are Chapter 2 pool bets for the purposes of the calculation of the amount of the bookmaker's profits on Chapter 2 pool bets for any accounting period; (c) a person responsible for the management of any totalisator used for the purposes of any such business; (d) where a person within any of paragraphs (a) to (c) is a company, a director.
Propose a change152 Notification of reliance on community benefit exemption
(1) Where a bookmaker relies for the purposes of pool betting duty on the fact that a bet is not a Chapter 2 pool bet by virtue of being made for community benefit, the bookmaker must inform the Commissioners of that fact. (2) The Commissioners may by notice published by them— (a) specify the manner in which, and the time at which, the Commissioners are to be informed as mentioned in subsection (1), and (b) direct that subsection (1) is not to apply in a specified case or class of cases.
Propose a change153 Bets made for community benefit
(1) For the purposes of this Part (but subject to any direction under subsection (3)), a bet is made “for community benefit” if— (a) the promoter of the betting concerned is a community society or is bound to pay all benefits accruing from the betting to such a society, and (b) the person making the bet knows, when making it, that the purpose of the betting is to benefit such a society. (2) In the case of a bet made by means of a totalisator, the reference in subsection (1) to the promoter of the betting concerned is a reference to the operator. (3) The Commissioners may direct that any bet specified by the direction, or of a description so specified, is not a bet made for community benefit. (4) The power conferred by subsection (3) may not be exercised unless the Commissioners consider that an unreasonably large part of the amounts paid in respect of the bets concerned will, or may, be applied otherwise than— (a) in the payment of winnings, or (b) for the benefit of a community society. (5) In this section “community society” means— (a) a society established and conducted for charitable purposes only, or (b) a society established and conducted wholly or mainly for the support of athletic sports or athletic games and not established or conducted for purposes of private or commercial gain. (6) In this section “society” includes any club, institution, organisation or association of persons, by whatever name called.
Propose a change154 Remote gaming
(1) For the purposes of this Part “remote gaming” is gaming in which persons participate by the use of— (a) the internet, (b) telephone, (c) television, (d) radio, or (e) any other kind of electronic or other technology for facilitating communication. (2) Remote gaming is “pooled prize gaming” for the purposes of this Part if all or any part of the gaming payment is assigned by or on behalf of the gaming provider to a fund (referred to in this Part as a “gaming prize fund”) from which prizes are to be provided to participants in the gaming. (3) Remote gaming is “ordinary gaming” for the purposes of this Part if it is not pooled prize gaming. (4) The Treasury may by regulations— (a) amend the definition of “remote gaming” in subsection (1), ... (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) Nothing in subsection (4)(b) affects the generality of section 194(1).
Propose a change155 Remote gaming duty
(1) A duty of excise, to be known as remote gaming duty, is charged on a chargeable person's participation in remote gaming under arrangements (whether or not enforceable) between the chargeable person and another person (referred to in this Part as a “gaming provider”). (2) In this Part “chargeable person” means— (a) any UK person, and (b) any body corporate not legally constituted in the United Kingdom if the person with whom the arrangements mentioned in subsection (1) are made knows, or has reasonable cause to believe, that at least one potential beneficiary of any prizes from remote gaming under the arrangements is a UK person. (3) Remote gaming duty is chargeable at the rate of 40% of the gaming provider's profits on remote gaming for an accounting period. (4) The gaming provider's profits on remote gaming for an accounting period are the aggregate of— (a) the amount of the provider's profits for the period in respect of pooled prize gaming (calculated in accordance with section 156), (b) the amount of the provider's profits for the period in respect of ordinary gaming (calculated in accordance with section 157), and (c) the amount of the provider's profits for the period in respect of retained prizes (calculated in accordance with section 158). (5) Where the calculation for an accounting period under subsection (4) produces a negative amount— (a) the gaming provider's profits on remote gaming for the accounting period are treated as nil, and (b) the amount produced by the calculation may be carried forward in reduction of the gaming provider's profits on remote gaming for one or more later accounting periods.
Propose a change156 Profits on pooled prize gaming
(1) Take the following steps to calculate the amount of a gaming provider's profits for an accounting period in respect of pooled prize gaming. Step 1 Take the aggregate of the relevant gaming payments made to the provider in the accounting period and deduct the aggregate of any of those payments that are assigned by or on behalf of the provider to gaming prize funds during the period. Step 2 If in the accounting period any amount contained in a gaming prize fund to which relevant gaming payments have been assigned by or on behalf of the provider is used otherwise than to provide prizes to participators in pooled prize gaming, multiply each amount so used in the accounting period by the relevant proportion that applies in relation to it. Step 3 Add the aggregate of the amounts calculated under Step 2 to the amount calculated under Step 1. Step 4 If in the accounting period any top-up payment is assigned to a gaming prize fund by the gaming provider, multiply the amount of each top-up payment so assigned in the accounting period by the appropriate proportion that applies in relation to it. Step 5 Subtract the aggregate of the amounts calculated under Step 4 from the amount calculated under Step 3. (2) For the purposes of Step 2 the relevant proportion, in relation to any amount which is used otherwise than to provide prizes, is— (a) if the amount relates to a specific game of chance, the proportion of that amount that consists of relevant gaming payments made to the provider in respect of that game, (b) if the amount does not relate to a specific game of chance but relates to amounts assigned to the fund during a specific period, the proportion of that amount that consists of relevant gaming payments assigned to the fund by or on behalf of the provider during that period, and (c) in any other case, the proportion of the total amount contained in the fund immediately before the amount is so used which consists of relevant gaming payments assigned to the fund by or on behalf of the provider. (3) For the purposes of Step 4— (a) a top-up payment is assigned to a gaming prize fund if the gaming provider assigns an amount (other than a gaming payment) to the fund to satisfy a guarantee given by the gaming provider that prizes of a specified minimum amount will be available in respect of gaming under arrangements made with the provider, and (b) the appropriate proportion, in relation to such a top-up payment, is the proportion determined in accordance with a notice published by the Commissioners. (4) A notice under subsection (3)(b) may provide for top-up payments to be ignored for the purposes of Step 4 in a specified case or class of cases. (5) In this section “relevant gaming payment” means a gaming payment in respect of pooled prize gaming.
Propose a change157 Profits on ordinary gaming
(1) To calculate the amount of a gaming provider's profits for an accounting period in respect of ordinary gaming— (a) take the aggregate of the gaming payments made to the provider in the accounting period in respect of ordinary gaming, and (b) subtract the amount of the provider's expenditure for the period on prizes in respect of such gaming. (2) The amount of the gaming provider's expenditure on prizes for an accounting period in respect of ordinary gaming is the aggregate of the value of prizes provided by or on behalf of the provider in that period which have been won (at any time) by chargeable persons participating in ordinary gaming.
Propose a change158 Profits on retained prizes
(1) The amount of a gaming provider's profits for an accounting period in respect of retained prizes is the aggregate of the amounts which cease to be qualifying amounts during the accounting period. (2) An amount is a qualifying amount for the purposes of this section if, as a result of a person (“P”) being notified as mentioned in section 160(1), it has been taken into account in calculating the provider's profits for any accounting period under section 156 or 157. (3) An amount ceases to be a qualifying amount for the purposes of this section if, otherwise than by virtue of being withdrawn by P as mentioned in section 160(1), P ceases to be entitled to withdraw it. (4) The Commissioners may by notice published by them direct that subsection (3) is not to apply in a specified case or class of cases.
Propose a change