Finance Act 2002 (c. 23)

(The document as of February, 2008)

-- Back --

Page 12

Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14 | P.15 | P.16 | P.17 | P.18 | P.19 | P.20 | P.21 | P.22 | P.23 | P.24 | P.25 | P.26 | P.27 | P.28 | P.29 | P.30 | P.31 | P.32 | P.33 | P.34 | P.35 | P.36 | P.37 | P.38 | P.39 | P.40 | P.41 | P.42

6 The duty

A duty of excise to be known as pool betting duty shall be charged in accordance with sections 7 to 8C.

7 Duty charged on net pool betting receipts

(1) If the amount of a person's net pool betting receipts for an accounting period is greater than zero, pool betting duty is charged on those receipts.

(2) The amount of that duty is 15 per cent of the amount of the receipts.

7A Calculating net pool betting receipts

For the purposes of section 7, the amount of a person's net pool betting receipts for an accounting period is--

S + E - W

where--

S is the aggregate of amounts falling due to the person in the accounting period in respect of dutiable pool bets,
E is the aggregate of expenses and profits falling within section 7E(2) that are attributable to the accounting period, and
W is the aggregate of amounts paid by the person in the accounting period by way of winnings on dutiable pool bets (irrespective of when the bets were made or determined).

7B Net pool betting receipts: meaning of "dutiable pool bet"

(1) For the purposes of a calculation under section 7A of the amount of a person's net pool betting receipts for any accounting period, a bet (wherever made) is a "dutiable pool bet" if--

(a) the bet is made by way of pool betting, and

(b) the following conditions are satisfied.

(2) The first condition is that--

(a) the bet is made by means of a totalisator situated in the United Kingdom and that person is the operator, or

(b) the bet is made otherwise than by means of a totalisator and that person is the promoter and is in the United Kingdom.

(3) The second condition is that the bet is not--

(a) made by way of sponsored pool betting,

(b) made as mentioned in section 4(3), or

(4) The third condition is that if the bet was made before 31st March 2002, at least one event to which it relates takes place on or after that date.

7C Net pool betting receipts: calculating stake money

(1) This section applies for the purpose of calculating S in a calculation under section 7A.

(2) Any payment that entitles a person to make a bet shall, if he makes the bet, be treated as stake money on the bet.

(3) All payments made--

(a) for or on account of or in connection with bets that are dutiable pool bets for the purposes of the calculation,

(b) in addition to the stake money, and

shall be treated as amounts due in respect of the bets except in so far as the contrary is proved by the person whose net pool betting receipts are being calculated.

7D Net pool betting receipts: when stakes etc fall due

(1) Subsections (2) to (5) apply for the purpose of calculating S in a calculation under section 7A but have effect subject to any regulations under subsection (6).

(2) Where--

(a) a person makes a bet, and

(b) the bet relates to a single event, or to two or more events all taking place on the same day,

any sum due to a person in respect of the bet shall be treated as falling due on the day on which the event or events take place.

(3) Where--

(a) a person makes a bet, and

(b) subsection (2) does not apply,

any sum due to a person in respect of the bet shall (subject to subsection (5)) be treated as falling due when the bet is made.

(4) Subsections (2) and (3) have effect in relation to a sum irrespective of when it is actually paid or required to be paid (even where a sum that those subsections require to be treated as falling due on or after 31st March 2002 was actually paid, or required to be paid, before that date).

(5) As respects a bet made before 31st March 2002 that relates to events at least one of which takes place before that date and at least one of which takes place on or after that date, any sum paid on or after that date in respect of the bet shall be treated as falling due when it is paid.

(6) The Commissioners may by regulations make provision as to when any sum due to a person in respect of a bet is to be treated as falling due for the purpose of calculating S in a calculation under section 7A.

(7) Provision made by regulations under subsection (6) may not provide for a sum due to a person 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.

(8) Regulations made under subsection (6) may--

(a) make provision that applies generally or only in relation to a specified description of bet;

(b) make different provision for different purposes;

(c) make provision relating to bets made before the regulations are made (including bets made before the passing of the Finance Act 2002);

(d) make transitional provision.

7E Net pool betting receipts: expenses and profits

(1) Subsections (2) and (3) apply for the purpose of calculating E in a calculation under section 7A.

(2) The expenses and profits falling within this subsection are (subject to subsection (3))--

(a) those of the person whose net pool betting receipts are being calculated, and

(b) those of any other person concerned with or benefiting from the promotion of the betting concerned.

(3) Expenses and profits do not fall within subsection (2) so far as they are--

(a) provided out of amounts due, in respect of bets that are dutiable pool bets for the purposes of the calculation, to the person whose net pool betting receipts are being calculated, or

(b) referable to matters other than--

(i) the promotion or management of the betting concerned, or

(ii) activities ancillary to, or connected with, such promotion or management.

(4) The Commissioners may by regulations make provision as to the accounting period to which expenses and profits falling within subsection (2) are to be treated as attributable for the purpose of calculating E in a calculation under section 7A.

(5) Regulations made under subsection (4) may--

(a) make provision that applies generally or only in relation to a specified description of bet;

(b) make different provision for different purposes;

(c) make provision applying in respect of expenses incurred, and profits accruing, before the regulations are made (including any incurred or accruing before the passing of the Finance Act 2002);

(d) make transitional provision.

7F Net pool betting receipts: calculating winnings

(1) Subsections (2) to (5) apply for the purpose of calculating W in a calculation under section 7A.

(2) The reference to paying an amount to a person includes a reference to holding it in an account if the person is notified that the amount is being held for him in the account and that he is entitled to withdraw it on demand.

(3) The return of a stake shall be treated as a payment by way of winnings.

(4) Only payments of money shall be taken into account.

(5) Where a bet made before 31st March 2002 relates to events at least one of which takes place before that date and at least one of which takes place on or after that date, no account shall be taken of any payment by way of winnings on the bet.

(6) The Commissioners may by regulations make provision as to when amounts paid by way of winnings are to be treated as being paid for the purposes of calculating W in a calculation under section 7A.

(7) Regulations made under subsection (6) may--

(a) make provision that applies generally or only in relation to a specified description of bet;

(b) make different provision for different purposes;

(c) make provision applying in respect of amounts paid before the regulations are made (including amounts paid before the passing of the Finance Act 2002);

(d) make transitional provision.

8 Payment and recovery

(1) Pool betting duty charged on a person's net pool betting receipts for an accounting period--

(a) becomes due at the end of the period,

(b) shall be paid by the person, and

(c) shall, subject to any regulations under subsection (3) and any directions under paragraph 3 of Schedule 1 to this Act, 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 person on whose net pool betting receipts the duty is charged ("the primary payer");

(b) a person responsible for the management of any business in the course of which any bets have been made that are dutiable pool bets for the purposes of calculations under section 7A of the amount of the primary payer's net pool betting receipts for any accounting period;

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

(3) The Commissioners may by regulations--

(a) make provision as to when pool betting duty is to be paid (including provision repealing paragraph 3 of Schedule 1 to this Act and the reference to that paragraph in subsection (1)(c));

(b) make provision as to how pool betting duty is to be paid.

(4) Regulations made under subsection (3) may--

(a) make provision that applies generally or only in relation to a specified person or class of person;

(b) make different provision for different purposes;

8A Meaning of "bet made for community benefit" in sections 6 to 8

(1) For the purposes of sections 6 to 8 (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 gain.

(6) In this section "society" includes any club, institution, organisation or association of persons, by whatever name called.

8B Meaning of "accounting period" in sections 6 to 8

(1) For the purposes of sections 6 to 8--

(a) each period that ends with the last Saturday in a calendar month, and begins with the Sunday immediately following the previous such Saturday, is an accounting period, but

(b) the Commissioners may by regulations make provision for some other specified period to be an accounting period.

(2) Regulations made under subsection (1)(b) may--

(a) make provision that applies generally or only in relation to a specified person or class of person;

(b) make different provision for different purposes;

8C Meaning of "bet" in sections 6 to 8A

(1) For the purposes of sections 6 to 8A, "bet" does not include the taking of a ticket or chance in a lottery.

(2) 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 shall be treated as bets for the purposes of sections 6 to 8A notwithstanding that the power is not exercised.

(3) Subsection (2) has effect subject to section 12(3).

(4) Where any payment entitles a person to take part in a transaction that is, on his part only, not a bet made by way of pool betting by reason of his not in fact making any stake as if the transaction were such a bet, the transaction shall be treated as such a bet for the purposes of pool betting duty (and section 7C(3) shall apply to any such payment). " .

3 In section 2(2) (bets to which section 2(1) does not apply)--

(a) in paragraph (b), after "bet," insert "or", and

(b) omit paragraph (d) and the word "or" preceding it.

4 In section 4(6) (bets to which subsections (1) to (3) do not apply), for the words from "do not apply" to the end substitute "do not apply to on-course bets.".

5 In section 9(2) (bets to which section applies), omit "or coupon betting" (in both places).

6 In section 9(3) (bets to which section does not apply)--

(a) in paragraph (a), omit "or coupon betting",

(b) for sub-paragraphs (i) to (iv) of paragraph (a) substitute--

" (i) the bet is not made by means of a totalisator, and

(ii) the promoter is in the Isle of Man; or " , and

7 For section 9(6) substitute--

" (6) Section 8C(1) to (3) above shall have effect for the purposes of subsections (2)(a) and (5) above as it has effect for the purposes of sections 6 to 8A above. " .

8 Omit section 11 (definition of coupon betting).

9 In section 12(3) (interpretation of sections 1 to 10 etc), omit "(except in sections 6, 7, 8, 9(2)(a) and 9(5) in their application to coupon betting)".

10 (1) Schedule 1 (administration etc of betting duties) is amended as follows.

(2) In paragraph 1, in the definition of "pool betting business", at the end insert "or would or might involve such sums becoming so payable if receipts from bets made for community benefit (as defined by section 8A of this Act) were not excluded from that duty.".

(3) After paragraph 2 insert--

" 2A (1) Pool betting duty shall be under the care and management of the Commissioners.

(2) Without prejudice to any other provision of this Schedule, the Commissioners may make regulations providing for any matter for which provision appears to them to be necessary for the administration or enforcement of pool betting duty or for the protection of the revenue from pool betting duty.

(3) Regulations under sub-paragraph (2) above may in particular--

(a) provide for payments on account of pool betting duty which may become chargeable to be made in advance;

(b) provide for the giving of security by means of a deposit or otherwise for duty due or to become due. " .

(4) In paragraph 3, omit "shall be under the care and management of the Commissioners, and".

(5) In paragraph 4(2), for "sub-paragraphs (3) and (4)" substitute "sub-paragraph (3)".

(6) Omit paragraph 4(4) to (6).

(7) In paragraph 5(1), for "made entry or given notice in accordance with paragraph 4(2) or (4)" substitute "made entry in accordance with paragraph 4(2)".

(8) Renumber paragraph (b) of paragraph 5(2) as paragraph 5(3).

(9) In what remains of paragraph 5(2) after that renumbering, for the words from "paragraph 12(3) below, except that" to the end substitute "sub-paragraph (3) below.".

(10) In paragraph 6(2), omit paragraph (b).

(11) Omit paragraphs 8 and 12.

(12) In paragraph 13(1)(b), after "any of paragraphs 2," insert "2A,".

(13) In paragraph 14(1), omit the words after paragraph (b).

(14) In paragraph 15(4), for "the said Schedule 1" substitute "Schedule 1 to the Betting, Gaming and Lotteries Act 1963".

Part 2 Minor amendments and transitional provisions

Amendment in the Excise Duties (Surcharges or Rebates) Act 1979

11 In section 1(3) of the Excise Duties (Surcharges or Rebates) Act 1979 (c. 8) (liability to duty other than pool betting duty adjusted if order under section in force when duty becomes due), omit the words from ", except that if the duty is pool betting duty" to the end.

Amendments in Schedule 5 to the Finance Act 1994

12 (1) Paragraph 6 of Schedule 5 to the Finance Act 1994 (c. 9) (decisions under the Betting and Gaming Duties Act 1981 that are subject to review and appeal) is amended as follows.

(2) In sub-paragraph (2)(a) (decisions in connection with requiring security for duty)--

(a) after "regulations under paragraph 2" insert "or 2A", and

(b) after "in relation to general betting duty" insert "or pool betting duty".

(3) After sub-paragraph (2) insert--

" (3) Any decision consisting in the giving of a direction under section 8A(3) of the Betting and Gaming Duties Act 1981 (pool betting duty: direction that bet is not made for community benefit). " .

Duty charged before 31st March 2002

13 (1) If--

(a) stake money is paid before 31st March 2002 in respect of a bet to which this paragraph applies, and

(b) pool betting duty charged on that money before that date is not paid before 24th April 2002,

that duty ceases on 24th April 2002 to be charged on that money.

(2) If--

(a) stake money is paid before 31st March 2002 in respect of such a bet, and

(b) pool betting duty charged on that money before that date is paid before 24th April 2002,

the person who paid that duty becomes entitled on 24th April 2002 to a credit equal to the amount of the duty.

(3) Effect is given to such a credit by setting it (until fully utilised) against pool betting duty that the person is liable to pay in respect of accounting periods for the purposes of pool betting duty that begin on or after 31st March 2002 (taking earlier such periods before later ones).

(4) Such a credit does not--

(a) carry interest,

(b) affect the payability of the duty mentioned in sub-paragraph (2), or

(5) This paragraph applies to a bet if--

(a) it is a dutiable pool bet for the purposes of a calculation, under the section 7A of the Betting and Gaming Duties Act 1981 inserted by this Schedule, of the amount of a person's net pool betting receipts for any accounting period, and

(b) it is made before 31st March 2002 but all the events to which it relates take place on or after that date.

Notifications under paragraph 4(4) of Schedule 1 to that Act of premises used in connection with coupon betting

14 Any notification under paragraph 4(4) of Schedule 1 to the Betting and Gaming Duties Act 1981 (c. 63) (duty to notify premises used for purposes of pool betting business in connection only with coupon betting) that is effective immediately before 24th April 2002 shall on and after that date have effect (until withdrawn) as a notification made on 31st March 2002 under paragraph 4(3) of that Schedule (duty to notify premises used for purposes of betting business in connection only with general betting).

Section 19

SCHEDULE 5 Vehicle excise duty: registered vehicles etc

1 The Vehicle Excise and Registration Act 1994 (c. 22) is amended as follows.

2 For section 1(1) substitute--

" (1) A duty of excise ("vehicle excise duty") shall be charged in respect of every mechanically propelled vehicle that--

(a) is registered under this Act (see section 21), or

(b) is not so registered but is used, or kept, on a public road in the United Kingdom.

(1A) Vehicle excise duty shall also be charged in respect of every thing (whether or not it is a vehicle) that has been, but has ceased to be, a mechanically propelled vehicle and--

(a) is registered under this Act, or

(b) is not so registered but is used, or kept, on a public road in the United Kingdom.

(1B) In the following provisions of this Act "vehicle" means--

(a) a mechanically propelled vehicle, or

(b) any thing (whether or not it is a vehicle) that has been, but has ceased to be, a mechanically propelled vehicle.

(1C) Vehicle excise duty charged in respect of a vehicle by subsection (1)(a) or (1A)(a) shall be paid on a licence to be taken out--

(a) by the person in whose name the vehicle is registered under this Act, or

(b) if that person is not the person keeping the vehicle, by either of those persons.

(1D) Vehicle excise duty charged in respect of a vehicle by subsection (1)(b) or (1A)(b) shall be paid on a licence to be taken out by the person keeping the vehicle. " .

3 For section 2(2) to (4) (rates where duty charged in respect of keeping but not use) substitute--

" (2) Subsection (1) applies subject to the following provisions of this section.

(3) Where vehicle excise duty is charged by section 1(1)(b) or (1A)(b) in respect of the keeping of a vehicle on a road (and not in respect of its use), duty in respect of such keeping is chargeable by reference to the general rate currently specified in paragraph 1(2) of Schedule 1.

(4) Subsections (5) and (6) apply where--

(a) vehicle excise duty is charged by section 1(1)(a) or (1A)(a) in respect of a vehicle, and

(b) were the vehicle not registered under this Act, duty would not be charged by section 1(1)(b) or (1A)(b) in respect of the use of the vehicle on a road.

(5) Where one or more use licences have previously been issued for the vehicle, the duty charged by section 1(1)(a) or (1A)(a) is chargeable by reference to the annual rate currently applicable to a vehicle of the same description as that of the vehicle on the occasion of the issue of that licence (or the last of those licences).

(6) In any other case, the duty charged by section 1(1)(a) or (1A)(a) is chargeable by reference to the general rate currently specified in paragraph 1(2) of Schedule 1.

(7) In subsection (5) "use licence" means--

(a) a vehicle licence issued for the use of a vehicle, or

(b) a vehicle licence that is issued by reason of a vehicle being registered under this Act but which would have been issued for the use of the vehicle if the vehicle had not been registered under this Act. " .

4 For section 7(4) (vehicle licence valid only for vehicle for which it is issued) substitute--

" (4) A vehicle licence is issued for the vehicle specified in the application for the licence (and for no other). " .

5 After section 7 insert--

" 7A Supplement payable on late renewal of vehicle licence

(1) Regulations may make provision for a supplement of a prescribed amount to be payable in prescribed cases where--

(a) a vehicle licence taken out for a vehicle expires, and

(b) no vehicle licence is issued for the vehicle--

(i) before the end of such period beginning with the expiry of the expired licence as may be prescribed, and

(ii) for a period beginning with that expiry.

(2) A supplement under this section--

(a) shall be payable by such person, or jointly and severally by such persons, as may be prescribed;

(b) shall become payable at such time as may be prescribed;

(i) the expiry of the licence by reason of whose non-renewal the supplement becomes payable, and

(ii) the time at which the supplement is paid or that licence is renewed.

(3) A supplement under this section that has become payable--

(a) is in addition to any vehicle excise duty charged in respect of the vehicle concerned;

(b) does not cease to be payable by reason of a vehicle licence being taken out for the vehicle after the supplement has become payable;

(c) may, without prejudice to section 6 or 7B(2) and (3) or any other provision of this Act, be recovered as a debt due to the Crown.

(4) In this section--

(a) references to the expiry of a vehicle licence include a reference to--

(i) its surrender, and

(ii) its being treated as no longer in force for the purposes of subsection (2) of section 31A by subsection (4) of that section;

(b) "prescribed" means prescribed by, or determined in accordance with, regulations;

(5) No regulations to which subsection (6) applies shall be made under this section unless a draft of the regulations has been laid before, and approved by a resolution of, each House of Parliament.

(6) This subsection applies to regulations under this section that--

(a) provide for a supplement to be payable in a case where one would not otherwise be payable,

(b) increase the amount of a supplement,

(d) provide for a supplement to be payable by a person by whom the supplement would not otherwise be payable.

7B Late-renewal supplements: further provisions

(1) The Secretary of State may by regulations make provision for notifying the person in whose name a vehicle is registered under this Act about--

(a) any supplement under section 7A that may or has become payable on non-renewal of a vehicle licence for the vehicle;

(b) when failure to renew a vehicle licence may result in the person being guilty of an offence under section 31A.

(2) The Secretary of State may by regulations make provision--

-- Back --

Stat