Legalize / United Kingdom / Public General Act

Finance Act 2014

Type Public General Act

Publication 2014-07-17

Last updated 2024-11-18

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(4) But subsections (2) and (3) do not apply in a case where the agreement under subsection (1) provides for the duty payable to be paid by more than one instalment (and for this case see subsection (5)). (5) In a case where— (a) a vehicle licence or a trade licence is issued to a person in accordance with subsection (1), (b) the duty payable on the licence is not received by the Secretary of State in accordance with the agreement, (c) the agreement provides for the duty payable to be paid by more than one instalment, (d) the Secretary of State sends a notice to the person requiring the person to secure that the duty payable on the licence (both in respect of instalments which have fallen due and in respect of future instalments) is paid within the period specified in the notice, (e) the requirement in the notice is not complied with, and (f) the Secretary of State sends a further notice to the person informing that person that the licence is void from the time specified in the notice, the licence is to be void from the time specified.

(7) In section 35A (dishonoured cheques)—

(a) in subsection (1)(a), for “or 19B(3)(d)” substitute “ , 19B(3)(d) or 19B(5)(f) ”,

(b) after subsection (7) insert—

(8) In a case where a notice is sent as mentioned in section 19B(5)(f) the amounts specified in subsections (2)(b) and (4) are to be calculated on the basis of the rate described in section 4(1)(b) or 13(3A) (whichever is relevant).

, and

(8) In section 36 (dishonoured cheques: additional liability)—

(a) after subsection (6) insert—

(7) In a case where a notice is sent as mentioned in section 19B(5)(f) the amount specified in subsection (2) is to be calculated on the basis of the rate described in section 4(1)(b) or 13(3A) (whichever is relevant).

, and

(b) in the heading, for “Dishonoured cheques” substitute “ Failed payments ”.

(9) In Schedule 4 (transitionals etc), after paragraph 8(3) insert—

(4) In cases in which the provisions set out in sub-paragraph (1) have effect, sections 35A(8) and 36(7) are to be read as referring to section 13(4A) instead of section 13(3A).

(10) The amendments made by this section come into force on 1 October 2014.

Definition of “revenue weight”

90

(1) VERA 1994 is amended as follows.

(2) In section 60A (revenue weight), in subsection (9)(b)—

(a) for “at which” substitute “ which must not be equalled or exceeded in order for ”, and

(b) for “may lawfully” substitute “ to lawfully ”.

(3) In section 61 (vehicle weights)—

(a) in subsection (1)(b), after “not be” insert “ equalled or ”, and

(b) in subsection (2), after “not be” insert “ equalled or ”.

(4) The amendments made by this section have effect in relation to licences taken out on or after 1 April 2014.

Vehicle excise and registration: other provisions

91

Schedule 19 contains other provisions relating to vehicle excise and registration.

HGV road user levy

HGV road user levy: rates tables

92

(1) Schedule 1 to the HGV Road User Levy Act 2013 (rates of HGV road user levy) is amended as follows.

(2) In paragraph 4, for “is Band G” substitute

is— (a) Band E(T), in the case of a rigid goods vehicle which is a relevant rigid goods vehicle within the meaning of paragraph 10 of Schedule 1 to the 1994 Act (rigid goods vehicles used for drawing trailers of more than 4,000 kilograms), and (b) Band G, in all other cases.

(3) For Tables 2 to 5 substitute—

Revenue weight of vehicle	Revenue weight of vehicle	2 axle vehicle	3 axle vehicle	4 or more axle vehicle
More than	Not more than
kgs	kgs	Band	Band	Band
11,999	15,000	B	B	B
15,000	21,000	D	B	B
21,000	23,000	D	C	B
23,000	25,000	D	D	C
25,000	27,000	D	D	D
27,000	44,000	D	D	E
Revenue weight of vehicle	Revenue weight of vehicle	2 axle vehicle	3 axle vehicle	4 or more axle vehicle
---	---	---	---	---
More than	Not more than
kgs	kgs	Band	Band	Band
11,999	15,000	B(T)	B(T)	B(T)
15,000	21,000	D(T)	B(T)	B(T)
21,000	23,000	E(T)	C(T)	B(T)
23,000	25,000	E(T)	D(T)	C(T)
25,000	27,000	E(T)	D(T)	D(T)
27,000	44,000	E(T)	E(T)	E(T)
Revenue weight of tractive vehicle	Revenue weight of tractive vehicle	Any no of semi-trailer axles	2 or more semi-trailer axles	3 or more semi-trailer axles
---	---	---	---	---
More than	Not more than
kgs	kgs	Band	Band	Band
11,999	25,000	A	A	A
25,000	28,000	C	A	A
28,000	31,000	D	D	A
31,000	34,000	E	E	C
34,000	38,000	F	F	E
38,000	44,000	G	G	G
Revenue weight of tractive vehicle	Revenue weight of tractive vehicle	Any no of semi-trailer axles	2 or more semi-trailer axles	3 or more semi-trailer axles
---	---	---	---	---
More than	Not more than
kgs	kgs	Band	Band	Band
11,999	28,000	A	A	A
28,000	31,000	C	A	A
31,000	33,000	E	C	A
33,000	34,000	E	D	A
34,000	36,000	E	D	C
36,000	38,000	F	E	D
38,000	44,000	G	G	E

(4) The amendments made by this section are treated as having come into force on 1 April 2014.

HGV road user levy: disclosure of information by HMRC

93

(1) After section 14 of the HGV Road User Levy Act 2013 insert—

(14A) (1) Information which is held as mentioned in section 18(1) of the Commissioners for Revenue and Customs Act 2005 (confidentiality) may be disclosed by or with the authority of the Commissioners for Her Majesty's Revenue and Customs to— (a) the Secretary of State, or (b) a person providing services to the Secretary of State, for the purpose of enabling or assisting the exercise of any of the Secretary of State's functions under or by virtue of this Act. (2) Information disclosed in accordance with subsection (1) may not be further disclosed except— (a) to any other person to whom it could have been disclosed in accordance with that subsection, or (b) with the consent of the Commissioners for Her Majesty's Revenue and Customs (which may be general or specific). (3) If, in contravention of subsection (2), any revenue and customs information relating to a person is disclosed and the identity of the person— (a) is specified in the disclosure, or (b) can be deduced from it, section 19 of the Commissioners for Revenue and Customs Act 2005 (offence of wrongful disclosure) applies as it applies in relation to a disclosure of such information in contravention of section 20(9) of that Act. (4) In subsection (3) “revenue and customs information relating to a person” has the meaning given by section 19(2) of the Commissioners for Revenue and Customs Act 2005. (5) Nothing in this section authorises the making of a disclosure which contravenes the Data Protection Act 1998.

(2) In regulation 2 of the HGV Road User Levy (HMRC Information Gateway) Regulations 2013 (S.I. 2013/3186), omit paragraphs (1) and (2).

Aggregates levy

Aggregates levy: removal of certain exemptions

94

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Aggregates levy: power to restore exemptions

95

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Climate change levy

Climate change levy: main rates for 2015-16

96

(1) In paragraph 42(1) of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy) for the table substitute—

Taxable commodity supplied	Rate at which levy payable if supply is not a reduced-rate supply
Electricity	£0.00554 per kilowatt hour
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility	£0.00193 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state	£0.01240 per kilogram
Any other taxable commodity	£0.01512 per kilogram

(2) The amendment made by this section has effect in relation to supplies treated as taking place on or after 1 April 2015.

Climate change levy: carbon price support rates for 2014-15 and 2015-16

97

(1) Paragraph 42A of Schedule 6 to FA 2000 (climate change levy: carbon price support rates) is amended as follows.

(2) In the table in sub-paragraph (3), as substituted by paragraph 23 of Schedule 42 to FA 2013, for “ £0.85489 per gigajoule ” substitute “£0.81906 per gigajoule”.

(3) The amendment made by subsection (2) has effect in relation to supplies treated as taking place on or after 1 April 2014.

(4) In the table in sub-paragraph (3), as substituted by paragraph 24 of Schedule 42 to FA 2013, for “ £1.62534 per gigajoule ” substitute “£1.56860 per gigajoule”.

(5) The amendment made by subsection (4) has effect in relation to supplies treated as taking place on or after 1 April 2015.

Climate change levy: carbon price support rates for 2016-17

98

(1) In paragraph 42A of Schedule 6 to FA 2000 (climate change levy: carbon price support rates) for sub-paragraph (3) substitute—

(3) The carbon price support rates are as follows.

Carbon price support rate commodity	Carbon price support rate
Any gas in a gaseous state that is of a kind supplied by a gas utility	£0.00331 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, in a liquid state	£0.05280 per kilogram
Any commodity falling within paragraph 3(1)(d) to (f)	£1.54790 per gigajoule

(2) The amendment made by this section has effect in relation to supplies treated as taking place on or after 1 April 2016.

Climate change levy: exemptions: mineralogical & metallurgical processes etc

99

Schedule 20 makes provision in relation to climate change levy.

Landfill tax

Rates of landfill tax

100

(1) Section 42 of FA 1996 (amount of landfill tax) is amended as follows.

(2) In subsection (1)(a) (standard rate), for “£80” substitute “ £82.60 ”.

(3) In subsection (2) (reduced rate for disposal of qualifying material)—

(a) for “£80” substitute “ £82.60 ”, and

(b) for “£2.50” substitute “ £2.60 ”.

(4) The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2015.

Excise and customs duties: general

Goods carried as stores

101

Schedule 21 contains provision about goods shipped or carried as stores on ships or aircraft.

Penalties under section 26 of FA 2003: extension to excise duty

102

(1) In this section—

“dutiable excise goods” means goods of a class or description subject to any duty of excise, whether or not those goods are in fact chargeable with that duty, and whether or not that duty has been paid on the goods;

“relevant excise rule” means any duty, obligation, requirement or condition imposed by section 78 of CEMA 1979 (customs and excise control of persons entering or leaving the United Kingdom), so far as that section relates to—dutiable excise goods a person has obtained outside the United Kingdom, ordutiable excise goods a person has obtained in the United Kingdom without payment of excise duty,and in respect of which the person is not entitled to exemption from excise duty by virtue of any order under section 13 of the Customs and Excise Duties (General Reliefs) Act 1979 (personal reliefs).

(2) Sections 26 and 27 and 29 to 41 of FA 2003 (taxes and duties on importation and exportation: penalties) apply in relation to excise duty as they apply in relation to a relevant tax or duty (as defined by section 24(2) of that Act) except that, for this purpose, “relevant rule” in sections 26 and 33 means a relevant excise rule.

Value added tax

VAT: special schemes

103

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VAT: place of belonging

104

(1) Section 9 of VATA 1994 (place where supplier or recipient of services belongs) is amended as follows.

(2) In subsection (3)(c), after “usual place of residence” insert “ or permanent address ”.

(3) In subsection (5), for the words from “belonging” to the end substitute

belonging— (a) in the country in which the person's usual place of residence or permanent address is (except in the case of a body corporate or other legal person); (b) in the case of a body corporate or other legal person, in the country in which the place where it is established is.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) The amendments made by this section have effect in relation to supplies made on or after 1 January 2015.

VAT: place of supply orders: disapplication of transitional provision

105

(1) Section 97A of VATA 1994 (place of supply orders: transitional provision) is to be ignored for the purpose of giving effect to any new order under section 7A(6) of that Act which—

(a) is expressed as having effect in relation to supplies made on or after 1 January 2015, and

(b) makes provision about the place of supply of electronically supplied services, telecommunication services and radio and television broadcasting services.

(2) In subsection (1) “new order” means an order made on or after the day on which this Act is passed.

(3) Subsection (1) applies only so far as the order makes provision about supplies to which Article 2 of Council Implementing Regulation (EU) No 1042/2013 (transitional provision for changes in the law affecting electronically supplied, telecommunication and radio and television broadcasting services) applies.

VAT: supply of services through agents

106

(1) Section 47 of VATA 1994 (agents) is amended as follows.

(2) In subsection (3), after “services” insert “ , other than electronically supplied services and telecommunication services, ”.

(3) After subsection (3) insert—

(4) Where electronically supplied services or telecommunication services are supplied through an agent, the supply is to be treated both as a supply to the agent and as a supply by the agent. (5) For the purposes of subsection (4) “agent” means a person (“A”) who acts in A's own name but on behalf of another person within the meaning of Article 28 of Council Directive 2006/112/EC on the common system of value added tax. (6) In this section “electronically supplied services” and “telecommunication services” have the same meaning as in Schedule 4A (see paragraph 9(3) and (4) and paragraph 8(2) of that Schedule).

(4) The amendments made by this section have effect in relation to supplies made on or after 1 January 2015.

VAT: refunds to health service bodies

107

(1) In section 41(7) of VATA 1994 (application to the Crown: list of bodies regarded as Government departments) after “Excellence” insert “ , Health Education England (established by the Care Act 2014), and the Health Research Authority (also established by that Act), ”.

(2) In section 41(7) of VATA 1994 as amended by subsection (1)—

(a) for “above,” substitute

— (a)

for the “and” after “1990,” substitute— (b)

, (c)

(d) for the “and” after “foundation trust” substitute

, (d)

(e) for the “and” after “Care Trust” substitute

, (e)

(f) for the “and” after “Health Board” substitute

, (f)

(g) after “group,” insert—

(g)

(h) after “Centre,” insert—

(h)

(i) for the “and” after “Commissioning Board” substitute

, (i)

(j) before “Health Education England” insert—

(j)

(k) before “the Health Research Authority” insert—

(k)

(l) the words from “shall be regarded” to the end are to follow, rather than form part of, the paragraph (k) so formed, and

(m) in those words, for “shall” substitute “ are each to ”.

VAT: prompt payment discounts

108

(1) In Part 2 of Schedule 6 to VATA 1994 (valuation: special cases), for paragraph 4 (prompt payment discounts), substitute—

(4) (1) Sub-paragraph (2) applies where— (a) goods or services are supplied for a consideration which is a price in money, (b) the terms on which those goods or services are so supplied allow a discount for prompt payment of that price, (c) payment of that price is not made by instalments, and (d) payment of that price is made in accordance with those terms so that the discount is realised in relation to that payment. (2) For the purposes of section 19 (value of supply of goods or services) the consideration is the discounted price paid.

(2) The amendment made by this section has effect in relation to relevant supplies made on or after 1 May 2014.

(3) The Treasury may by order made by statutory instrument provide that the amendment has effect in relation to supplies of a description specified in the order made on or after a date so specified (being a date before 1 April 2015).

(4) Subject to that, the amendment has effect in relation to supplies made on or after 1 April 2015.

(5) In this section—

“relevant supply” means a supply of radio or television broadcasting services or telecommunication services made by a taxable person who is not required by or under any enactment to provide a VAT invoice to the person supplied;

“telecommunication services” has the same meaning as in paragraph 8(2) of Schedule 4A to VATA 1994.

Stamp duty land tax and annual tax on enveloped dwellings

ATED: reduction in threshold from 1 April 2015

109

(1) Part 3 of FA 2013 (annual tax on enveloped dwellings) is amended as follows.

(2) In section 94(2)(a) (charge to tax), for “£2 million” substitute “ £1 million ”.

(3) In section 99 (amount of tax chargeable), in the table in subsection (4), before the first entry insert—

£7,000	More than £1 million but not more than £2 million.

(4) The amendments made by subsections (1) to (3) have effect for chargeable periods beginning on or after 1 April 2015.

(5) In a case where tax is charged for the chargeable period beginning with 1 April 2015 with respect to a single-dwelling interest the taxable value of which on the relevant day (see section 99(5) of FA 2013) is not more than £2 million, sections 159 and 163 of FA 2013 have effect with the following modifications.

(6) Section 159 (annual tax on enveloped dwellings return) has effect as if for subsections (2) and (3) there were substituted—

(2) A return under subsection (1) must be delivered by the end of 1 October 2015 if the days on which the person is within the charge with respect to the interest include 1 April 2015. (3) If the days on which the person is within the charge with respect to the interest do not include 1 April 2015, the return must be delivered— (a) by the end of 1 October 2015, or (b) by the end of the period of 30 days beginning with the first day in the chargeable period on which the person is within the charge with respect to the interest, whichever is the later.

(7) Section 163 (payment of tax) has effect as if for subsection (1) there were substituted—

(1) Tax charged on a person under section 99 with respect to a single-dwelling interest must be paid— (a) by the end of 31 October 2015, or (b) if later, by the end of the filing date for the return.

ATED: further reduction in threshold from 1 April 2016

110

(1) Part 3 of FA 2013 (annual tax on enveloped dwellings) is amended as follows.

(2) In section 94(2)(a) (charge to tax), for “£1 million” substitute “ £500,000 ”.

(3) In section 99 (amount of tax chargeable), in the table in subsection (4), before the first entry insert—

£3,500	More than £500,000 but not more than £1 million.

(4) The amendments made by this section have effect for chargeable periods beginning on or after 1 April 2016.

SDLT: threshold for higher rate applying to certain transactions

111

(1) Schedule 4A to FA 2003 (SDLT: higher rate for certain transactions) is amended as follows.

(2) In paragraph 1(2) (meaning of “higher threshold interest”) for “£2,000,000” substitute “ £500,000 ”.

(3) In consequence of the amendment made by subsection (2), in the following provisions, for “£2,000,000” substitute “ £500,000 ”

(a) paragraph 4(1)(c);

(b) paragraph 6(2);

(4) The amendments made by this section have effect in relation to any chargeable transaction of which the effective date is on or after 20 March 2014.

(5) But the amendments do not have effect in relation to a transaction—

(a) effected in pursuance of a contract entered into and substantially performed before 20 March 2014,

(b) effected in pursuance of a contract entered into before that date and not excluded by subsection (6), or

(6) A transaction effected in pursuance of a contract entered into before 20 March 2014 is excluded by this subsection if—

(a) there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 20 March 2014,

(b) the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or

(c) on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.

(7) A transaction treated as occurring under paragraph 17(2) or 17A(4) of Schedule 15 to FA 2003 (partnerships) is excepted by this subsection if the effective date of the land transfer referred to in sub-paragraph (1)(a) of the paragraph concerned is before 20 March 2014.

SDLT: exercise of collective rights by tenants of flats

112

(1) In section 74 of FA 2003 (exercise of collective rights by tenants of flats), in subsection (1A) for “£2,000,000”, in each place it occurs, substitute “ £500,000 ”.

(2) The amendments made by this section have effect in relation to any chargeable transaction of which the effective date is on or after 1 July 2014.

(3) But the amendments do not have effect in relation to a transaction—

(a) effected in pursuance of a contract entered into and substantially performed before 20 March 2014, or

(b) effected in pursuance of a contract entered into before that date and not excluded by subsection (4).

(4) A transaction effected in pursuance of a contract entered into before 20 March 2014 is excluded by this subsection if—

(a) there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 20 March 2014,

(b) the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or

(c) on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.

SDLT: charities relief

113

Schedule 23 amends Schedule 8 to FA 2003 (stamp duty land tax: charities relief).

Stamp duty reserve tax and stamp duty

Abolition of SDRT on certain dealings in collective investment schemes

114

(1) Part 2 of Schedule 19 to FA 1999 (which provides for a charge to stamp duty reserve tax on certain dealings with units in unit trusts) is omitted.

(2) In section 90(1B) of FA 1986 (exception to charge to stamp duty reserve tax on certain agreements to transfer property from a unit trust)—

(a) after “unit trust scheme” insert “ if the unit holder is to receive only such part of each description of asset in the trust property as is proportionate to, or as nearly as practicable proportionate to, the unit holder's share. ”, and

(b) for the second sentence substitute “For these purposes there is a surrender of a unit where—

(a) a person (“P”) authorises or requires the trustees or managers of a unit trust scheme to treat P as no longer interested in a unit under the scheme, or (b) a unit under the unit trust scheme is transferred to the managers of the scheme, and the unit is a chargeable security.

(3) Accordingly—

(a) in FA 1999, in section 123(3), for “Parts I to III” substitute “ Parts I and III ”,

(b) in FA 2001, omit sections 93 and 94,

(d) in FA 2005, omit section 97(3), (4) and (6), and

(e) in FA 2010, in Schedule 6, omit paragraph 15(2).

(4) The amendments made by this section have effect in relation to surrenders made or effected on or after 30 March 2014.

(5) Provision made by regulations under section 98 of FA 1986, section 152 of FA 1995 or section 17 of F(No.2)A 2005 in connection with the coming into force of this section may be made so as to have effect in relation to surrenders made or effected on or after 30 March 2014 (even if the regulations are made after that date).

(6) In subsections (4) and (5) a reference to surrenders is to be read in accordance with paragraph 2 of Schedule 19 to FA 1999.

Abolition of stamp duty and SDRT: securities on recognised growth markets

115

Schedule 24 contains provision abolishing stamp duty and stamp duty reserve tax on instruments and transfers of securities traded on recognised growth markets.

Temporary statutory effect of House of Commons resolution

116

(1) Section 50 of FA 1973 (temporary statutory effect of House of Commons resolution affecting stamp duties) is amended as follows.

(2) In subsection (2), for paragraph (c) (and the “and” after it) substitute—

(c) the dissolution of Parliament; (ca) the prorogation of Parliament in a case where subsection (2B) does not apply; and

(3) In that subsection, in paragraph (d), for “six” substitute “ seven ”.

(4) After that subsection insert—

(2A) Subsection (2B) applies where Parliament is prorogued at the end of a session if— (a) during the session a Bill containing provisions to the same effect as the resolution is read a second time by the House or a Bill is amended (whether by the House or a Committee of the House or a Public Bill Committee) so as to include such provisions, (b) the Standing Orders or Sessional Orders of the House provide, or during the session the House orders, that proceedings on the Bill not completed before the end of the session shall be resumed in the next session, and (c) proceedings on the Bill are not completed during the session. (2B) A resolution shall cease to have statutory effect under this section if, during the period of thirty sitting days beginning with the first sitting day of the next session, no Bill containing provisions to the same effect as the resolution is presented to the House. (2C) In subsection (2B) “sitting day” means a day on which the House sits. (2D) Where a Bill is amended as mentioned in subsection (2A)(a), it does not matter for the purposes of subsection (2A)(b) if the House orders as mentioned in subsection (2A)(b) before the amendment to the Bill is made.

Inheritance tax

117

Schedule 25 contains provision about inheritance tax.

Estate duty

Gifts to the nation: estate duty

118

(1) In Schedule 14 to FA 2012 (gifts to the nation), before paragraph 33 insert—

(32A) (1) This paragraph applies where a person (“the donor”) makes a qualifying gift of an object in circumstances where, had the donor instead sold the object to an individual at market value, a charge to estate duty would have arisen under section 40 of FA 1930 on the proceeds of sale. (2) At the time when the gift is made, estate duty becomes chargeable under that section as if the gift were such a sale (subject to any limitation imposed by paragraph 33(2)). (3) In the application of this paragraph to Northern Ireland, the references to section 40 of FA 1930 are to be read as references to section 2 of the Finance Act (Northern Ireland) 1931.

(2) Subsection (3) applies where a person (“the donor”) has, before the day on which this Act is passed, made a qualifying gift of an object in circumstances where, had the donor instead sold the object to an individual at market value, a charge to estate duty would have arisen under section 40 of FA 1930 on the proceeds of sale.

(3) No liability to estate duty under section 40 of FA 1930 arises in respect of the object on or after the day on which this Act is passed.

(4) In subsection (2) “qualifying gift” has the same meaning as in Schedule 14 to FA 2012.

(5) In the application of subsections (2) and (3) to Northern Ireland, the references to section 40 of FA 1930 are to be read as references to section 2 of the Finance Act (Northern Ireland) 1931.

Bank levy

Bank levy: rates from 1 January 2014

119

(1) Schedule 19 to FA 2011 (bank levy) is amended as follows.

(2) In paragraph 6 (steps for determining the amount of the bank levy), in sub-paragraph (2)—

(a) for “0.065%” substitute “ 0.078% ”, and

(b) for “0.130%” substitute “ 0.156% ”.

(3) In paragraph 7 (special provision for chargeable periods falling wholly or partly before 1 January 2013)—

(a) in sub-paragraph (1) for “2013” substitute “ 2014 ”,

(b) in sub-paragraph (2), in the first column of the table in the substituted Step 7, for “ Any time on or after 1 January 2013 ” substitute “1 January 2013 to 31 December 2013”, and

Any time on or after 1 January 2014	0.078%	0.156%

;

and in the italic heading immediately before paragraph 7, for “2013” substitute “ 2014 ”.

(4) Section 203 of FA 2013 (bank levy rates from 1 January 2014) is repealed.

(5) The amendments made by subsections (2) to (4) are treated as having come into force on 1 January 2014 (and accordingly the section repealed by subsection (4) is treated as never having come into force).

(6) Subsections (7) to (13) apply where—

(a) an amount of the bank levy is treated as if it were an amount of corporation tax chargeable on an entity (“E”) for an accounting period of E,

(b) the chargeable period in respect of which the amount of the bank levy is charged falls (or partly falls) on or after 1 January 2014, and

(c) under the Instalment Payment Regulations, one or more instalment payments, in respect of the total liability of E for the accounting period, were treated as becoming due and payable before the commencement date (“pre-commencement instalment payments”).

(7) Subsections (1) to (5) are to be ignored for the purpose of determining the amount of any pre-commencement instalment payment.

(8) If there is at least one instalment payment, in respect of the total liability of E for the accounting period, which under the Instalment Payment Regulations is treated as becoming due and payable on or after the commencement date (“post-commencement instalment payments”), the amount of that instalment payment, or the first of them, is to be increased by the adjustment amount.

(9) If there are no post-commencement instalment payments, a further instalment payment, in respect of the total liability of E for the accounting period, of an amount equal to the adjustment amount is to be treated as becoming due and payable at the end of the period of 30 days beginning with the commencement date.

(10) “The adjustment amount” is the difference between—

(a) the aggregate amount of the pre-commencement instalments determined in accordance with subsection (7), and

(b) the aggregate amount of those instalment payments determined ignoring subsection (7) (and so taking account of subsections (1) to (5)).

(11) In the Instalment Payment Regulations—

(a) in regulations 6(1)(a), 7(2), 8(1)(a) and (2)(a), 9(5), 10(1), 11(1) and 13, references to regulation 4A, 4B, 4C, 4D, 5, 5A or 5B of those Regulations are to be read as including a reference to subsections (6) to (10) (and in regulation 7(2) “the regulation in question”, and in regulation 8(2) “that regulation”, are to be read accordingly), and

(b) in regulation 9(3), the reference to those Regulations is to be read as including a reference to subsections (6) to (10).

(12) In section 59D of TMA 1970 (general rule as to when corporation tax is due and payable), in subsection (5), the reference to section 59E is to be read as including a reference to subsections (6) to (11).

(13) In this section—

“the chargeable period” is to be construed in accordance with paragraph 4 or (as the case may be) 5 of Schedule 19 to FA 2011;

“the commencement date” means the day on which this Act is passed;

“the Instalment Payment Regulations” means the Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175);

and references to the total liability of E for an accounting period are to be construed in accordance with regulation 2(3) of the Instalment Payment Regulations.

Bank levy: miscellaneous changes

120

Schedule 26 contains miscellaneous changes to the bank levy.

Gaming duty

Rates of gaming duty

121

(1) In section 11(2) of FA 1997 (rates of gaming duty) for the table substitute—

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.

Bingo duty

Rate of bingo duty

122

(1) In section 17(1)(b) of BGDA 1981 (bingo duty chargeable at 20 per cent of bingo promotion profits), for “20” substitute “ 10 ”.

(2) The amendment made by subsection (1) has effect in relation to accounting periods beginning on or after 30 June 2014.

Exemption from bingo duty: small-scale amusements provided commercially

123

(1) In paragraph 5(1) of Schedule 3 to BGDA 1981 (exemptions from bingo duty for small-scale amusements provided commercially), for paragraph (b) substitute—

(b) on any premises if, for the time being— (i) a machine in respect of which a person is liable for machine games duty is located on the premises, and (ii) an adult gaming centre premises licence issued under Part 8 of the Gambling Act 2005 (see section 150(1)(c)) is in force in respect of the premises; or

(2) The amendment made by this section has effect in relation to games of bingo which begin to be played on or after the day on which this Act is passed.

Machine games duty

Rates of machine games duty

124

(1) Schedule 24 to FA 2012 is amended as follows.

(2) For paragraph 5 substitute—

(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—

(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.

PART 3 — General betting duty, pool betting duty and remote gaming duty

CHAPTER 1 — General betting duty

The duty

General betting duty

125

A duty of excise, to be known as general betting duty, is charged in accordance with this Chapter.

General and spread bets

General bets

126

(1) A bet is a general bet for the purposes of this Part if—

(a) it is not an on-course bet,

(b) it is not a spread bet,

(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

General betting duty charge on general bets

127

(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.

Spread bets

128

(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.

General betting duty charge on financial spread bets

129

(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.

General betting duty charge on non-financial spread bets

130

(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.

Ordinary profits

131

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.

Retained winnings profits

132

(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.

Bet-brokers

133

(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).

Pool betting on horse and dog races

Chapter 1 pool bets

134

(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,

(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

(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.

General betting duty charge on Chapter 1 pool bets

135

(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.

Profits on pooled stake Chapter 1 pool bets

136

(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.

Profits on ordinary Chapter 1 pool bets

137

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.

Profits on retained winnings on Chapter 1 pool bets

138

(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.

Stake money and winnings

Chapter 1: stake money

139

(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

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

Chapter 1: winnings

140

(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.

Exchanges

General betting duty charge on betting exchanges

141

(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.

Payment

Liability to pay

142

(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);

(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.

CHAPTER 2 — Pool betting duty

Chapter 2 pool bets

143

(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,

(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

(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.

Pool betting duty charge on Chapter 2 pool bets

144

(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.

Profits on pooled stake Chapter 2 pool bets

145

(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.

Profits on ordinary Chapter 2 pool bets

146

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.

Profits on retained winnings on Chapter 2 pool bets

147

(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.

Chapter 2: stake money

148

(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

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.

Chapter 2: winnings

149

(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.

Payments treated as bets

150

(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).

Payment and recovery

151

(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

(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;

(d) where a person within any of paragraphs (a) to (c) is a company, a director.

Notification of reliance on community benefit exemption

152

(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.

Bets made for community benefit

153

(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.

CHAPTER 3 — Remote gaming duty

Remote gaming

154

(1) For the purposes of this Part “remote gaming” is gaming in which persons participate by the use of—

(a) the internet,

(b) telephone,

(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), and

(b) make such consequential amendments of section 17(2A) of BGDA 1981 (cases in which bingo duty is not charged on bingo played by means of remote communication) as appear to the Treasury to be necessary.

(5) Nothing in subsection (4)(b) affects the generality of section 194(1).

Remote gaming duty

155

(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 21% 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.

Profits on pooled prize gaming

156

(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.

Profits on ordinary gaming

157

(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.

Profits on retained prizes

158

(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.

Gaming payments

159

(1) Where a chargeable person participates in remote gaming, the “gaming payment” for the purposes of this Chapter is the aggregate of—

(a) any amount that entitles the person to participate in the gaming, and

(b) any other amount payable for or on account of or in connection with the person's participation in the gaming.

(2) If the gaming payment is made to a person other than the gaming provider, it is to be treated for the purposes of this Chapter as made to the gaming provider.

(3) If the gaming payment has not been made at the time when the chargeable person begins to participate in the remote gaming to which it relates, it is to be treated for the purposes of this Chapter as being made at that time.

(4) For the purposes of this Chapter—

(a) where the chargeable person participates in the remote gaming in reliance on an offer which waives all of a gaming payment, the person is to be treated as having made a gaming payment of the amount which would have been required to be paid without the offer (“the full amount”), and

(b) where the chargeable person participates in the remote gaming in reliance on an offer which waives part of a gaming payment, the person is to be treated as having made an additional gaming payment of the difference between the gaming payment actually made and the full amount.

(5) Where a person is treated by subsection (4) as having made a gaming payment, the payment is to be treated for the purposes of this Chapter—

(a) as having been made to the gaming provider at the time when the chargeable person begins to participate in the remote gaming to which it relates, and

(b) as not having been—

(i) returned, or

(ii) assigned to a gaming prize fund.

(6) The Commissioners may by regulations make further provision about how a gaming payment which a person is treated as having made under subsection (4) is to be treated for the purposes of this Chapter.

(7) This section has effect subject to section 159A.

Prizes

160

(1) A reference in section 156 or 157 to providing a prize to a person includes a reference to crediting money to an account only if the person is notified that—

(a) the money is being held in the account, and

(b) the person is entitled to withdraw it on demand.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The return of all or part of a gaming payment is to be treated for the purposes of sections 156 and 157 as the provision of a prize (but where a gaming payment is returned by being credited to an account this subsection has effect subject to subsection (1)).

(4) Where a prize is obtained by or on behalf of a gaming provider from a person not connected with the person who obtains the prize, the cost to the person who obtains the prize is to be treated as the expenditure on the prize for the purposes of sections 156 and 157.

(5) Where a prize is a voucher which—

(a) may be used in place of money as whole or partial payment for benefits of a specified kind obtained from a specified person,

(b) specifies an amount as the sum or maximum sum in place of which the voucher may be used, and

the specified amount is the value of the voucher for the purposes of sections 156 and 157.

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