HC Deb 23 April 2002 vol 384 cc261-6

Resolved,

That—

(1) The Betting and Gaming Duties Act 1981 shall be amended in accordance with paragraphs (2) to (10).

(2)For sections 6 to 8 there shall be substituted—

"Pool betting duty

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—

  1. (a) the bet is made by way of pool betting, and
  2. (b) the following conditions are satisfied.
(2) The first condition is that—
  1. (a) the bet is made by means of a totalisator situated in the United Kingdom and that person is the operator, or
  2. (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—
  1. (a) made by way of sponsored pool betting,
  2. (b) made as mentioned in section 4(3), or
  3. (c) made for community benefit.
(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—

  1. (a) for or on account of or in connection with bets that are dutiable pool bets for the purposes of the calculation,
  2. (b) in addition to the stake money, and
  3. (c) by the persons making the bets,

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.

(2) Where—

  1. (a) a person makes a bet, and
  2. (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—

  1. (a) a person makes a bet, and
  2. (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.

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))—

  1. (a) those of the person whose net pool betting receipts are being calculated, and
  2. (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—
  1. (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
  2. (b) referable to matters other than—
    1. (i) the promotion or management of the betting concerned, or
    2. (ii) activities ancillary to, or connected with, such promotion or management.

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 he taken of any payment by way of winnings on the bet.

8 Payment and recovery

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

  1. (a) becomes due at the end of the period,
  2. (b) shall be paid by the person, and
  3. (c) shall, subject to 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—
  1. (a) the person on whose net pool betting receipts the duty is charged ("the primary payer");
  2. (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;
  3. (c) a person responsible for the management of any totalisator used for the purposes of any such business;
  4. (d) where a person within any of paragraphs (a) to (c) is a company, a director.

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—

  1. (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
  2. (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—

  1. (a) in the payment of winnings, or
  2. (b) for the benefit of a community society.
(5) In this section "community society" means—
  1. (a) a society established and conducted for charitable purposes only, or
  2. (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

For the purposes of sections 6 to 8, 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.

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)—

  1. (a) in paragraph (b), after "bet," there shall be inserted "or", and
  2. (b) paragraph (d), and the word "or" immediately preceding it, shall be omitted.
(4) In section 4(6), for the words from "do not apply" to the end there shall be substituted "do not apply to on-course bets.".

(5) In section 9(2), the words "or coupon betting" shall be omitted (in both places).

(6) In section 9(3)—

  1. (a) in paragraph (a), the words "or coupon betting" shall be omitted,
  2. (b) for sub-paragraphs (i) to (iv) of paragraph (a) there shall be substituted—
    1. "(i) the bet is not made by means of a totalisator, and
    2. (ii) the promoter is in the Isle of Man; or", and
  3. (c) in paragraph (aa)(i), the words "or coupon betting" shall be omitted.
(7) For section 9(6) there shall be substituted— (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) Section 11 shall be omitted.

(9) In section 12(3), the words "(except in sections 6, 7, 8, 9(2)(a) and 9(5) in their application to coupon betting)" shall be omitted.

(10) Schedule I shall be amended as follows—

  1. (a) in paragraph 1, in the definition of "pool betting business", at the end there shall be inserted "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.";
  2. (b) in paragraph 4(2), for "sub-paragraphs (3) and (4)" there shall be substituted "sub-paragraph (3)";
  3. (c) paragraph 4(4) to (6) shall be omitted;
  4. (d) in paragraph 5(1), for "made entry or given notice in accordance with paragraph 4(2) or (4)" there shall be substituted "made entry in accordance with paragraph 4(2)";
  5. (e) paragraph (b) of paragraph 5(2) shall be renumbered as paragraph 5(3);
  6. (f) in what remains of paragraph 5(2) after that renumbering, for the words from "paragraph 12(3) below, except that" to the end there shall be substituted "sub-paragraph (3) below.";
  7. (g) in paragraph 6(2), paragraph (b) shall be omitted;
  8. (h) paragraphs 8 and 12 shall be omitted;
  9. (i) in paragraph 14(1), the words after paragraph (b) shall be omitted; and
  10. (j) in paragraph 15(4), for "the said Schedule 1" there shall be substituted "Schedule 1 to the Betting, Gaming and Lotteries Act 1963".
(11) In section 1(3) of the Excise Duties (Surcharges or Rebates) Act 1979, the words from ", except that if the duty is pool betting duty" to the end shall be omitted.

(12) In paragraph 6 of Schedule 5 to the Finance Act 1994, after sub-paragraph (2) there shall be inserted—

(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).". (13) If—

  1. (a) stake money is paid before 31st March 2002 in respect of a bet to which paragraph (17) applies, and
  2. (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.

(14) If—

  1. (a) stake money is paid before 31st March 2002 in respect of a bet to which paragraph (17) applies, and
  2. (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.

(15) 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 beginning on or after 31st March 2002 (taking earlier such periods before later ones).

(16) Such a credit does not—

  1. (a) carry interest,
  2. (b) affect the payability of the duty mentioned in paragraph (14), or
  3. (c) entitle any person to any payment in respect of the credit.
(17) This paragraph applies to a bet if—
  1. (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 Resolution, of the amount of a person's net pool betting receipts for any accounting period, and
  2. (b) it is made before 31st March 2002 but all the events to which it relates take place on or after that date.
(18) Any notification under paragraph 4(4) of Schedule 1 to the Betting and Gaming Duties Act 1981 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.

(19) The amendments made by paragraph (2) shall have effect for the purposes of accounting periods beginning on or after 31st March 2002.

(20) The amendments made by paragraphs (3) and (4) shall apply to bets made on or after 31st March 2002.

(21) Subject to paragraph (22), this Resolution shall be deemed to have come into force on 31st March 2002.

(22) Paragraphs (5), (6)(a) and (c) and (7) to (18) shall come into force on 24th April 2002.

And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.