Finance Bill - continued        House of Lords

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  S C H E D U L E S
 
 

 
 
 
SCHEDULE 1
 
  GENERAL BETTING DUTY
     1. For sections 1 to 5 of the Betting and Gaming Duties Act 1981 (general betting duty: charge, rate and payment) substitute-
 
 

"General betting duty
The duty.     1. A duty of excise to be known as general betting duty shall be charged in accordance with sections 2 to 5D.
 
Bookmakers: general bets.     2. - (1) General betting duty shall be charged on a bet made with a bookmaker who is in the United Kingdom.
 
      (2) Subsection (1) does not apply to-
 
 
    (a) an on-course bet,
 
    (b) a spread bet,
 
    (c) a bet made by way of pool betting, or
 
    (d) a bet made by way of coupon betting.
      (3) The amount of duty charged in respect of bets made with a bookmaker in an accounting period shall be 15 per cent. of the amount of his net stake receipts for that period.
 
Bookmakers: spread bets.     3. - (1) General betting duty shall be charged on a spread bet made with a bookmaker who-
 
 
    (a) is in the United Kingdom, and
 
    (b) holds a bookmaker's permit.
      (2) A bet is a spread bet if it constitutes a contract to which section 63 of the Financial Services Act 1986 applies by virtue of paragraphs 9 and 12 of Schedule 1 to that Act (gaming contracts: investments).
 
      (3) The amount of duty charged under subsection (1) in respect of spread bets made with a bookmaker in an accounting period shall be-
 
 
    (a) 3 per cent. of the amount of his net stake receipts in respect of financial spread bets for that period (if any), plus
 
    (b) 10 per cent. of the amount of his net stake receipts in respect of other spread bets for that period (if any).
      (4) A "financial spread bet" is a spread bet the subject of which is a financial matter.
 
      (5) The Commissioners may by order provide that a specified matter-
 
 
    (a) shall be treated as a financial matter for the purpose of subsection (4), or
 
    (b) shall not be treated as a financial matter for that purpose.
Other betting.     4. - (1) General betting duty shall be charged on sponsored pool betting.
 
      (2) General betting duty shall be charged on a bet made by means of facilities provided by the Horserace Totalisator Board.
 
      (3) General betting duty shall be charged on a bet made on an event on a track falling within subsection (4) if the bet is made-
 
 
    (a) by means of a totalisator which operates on that track, and
 
    (b) on the day of the event.
      (4) A track falls within this subsection if-
 
 
    (a) a track betting licence is in force for the track under Schedule 3 to the Betting, Gaming and Lotteries Act 1963,
 
    (b) a track betting licence is in force for the track under Article 37 of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985, or
 
    (c) the Commissioners designate the track for the purposes of this subsection.
      (5) The amount of duty charged under subsections (1) to (3) in respect of bets made by means of facilities provided by a person in an accounting period shall be 15 per cent. of the amount of his net stake receipts for that period.
 
      (6) Subsections (1) to (3) do not apply to-
 
 
    (a) on-course bets, or
 
    (b) coupon betting.
Net stake receipts.     5. - (1) For the purposes of a charge under a provision of sections 2 to 4 in respect of the class of bets to which the provision applies, the amount of a person's net stake receipts for an accounting period is

X - Y,

where-

(a) X is the aggregate of amounts which fall due to that person in the accounting period in respect of bets of that class made with him, and

(b) Y is the aggregate of amounts paid by the person in that period by way of winnings to persons who made bets of that class with him (irrespective of when the bets were made or determined).
 

      (2) Where-
 
 
    (a) a person makes a bet other than a spread bet, and
 
    (b) the sum which he will lose if unsuccessful is known when the bet is made,
       that sum shall be treated for the purposes of subsection (1)(a) as falling due when the bet is made (irrespective of when it is actually paid or required to be paid).
 
      (3) Where the amount of a person's net stake receipts is zero or a negative amount, it shall be disregarded for the purposes of sections 2 to 4.
 
      (4) In calculating an amount due to a person in respect of a bet, no deduction shall be made in respect of-
 
 
    (a) any other benefit secured by the person who makes the bet as a result of paying the money,
 
    (b) a person's expenses, whether in paying duty or otherwise, or
 
    (c) any other matter.
      (5) Where a person makes a bet in pursuance of an offer which permits him to pay nothing or less than the amount which he would have been required to pay without the offer, he shall be treated for the purposes of this section as being due to pay that amount-
 
 
    (a) to the person with whom the bet is made, and
 
    (b) at the time when the bet is made.
      (6) For the purpose of subsection (1)(b)-
 
 
    (a) 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,
 
    (b) the return of a stake shall be treated as a payment by way of winnings, and
 
    (c) only payments of money shall be taken into account.
      (7) In the application of this section to a charge under section 4(1) to (3), a reference to bets made with a person shall be treated as a reference to bets made by means of facilities provided by him.
 
Multiple bets.     5A. - (1) Subject to subsection (3), this section applies where-
 
 
    (a) a person bets on more than one contingency, and
 
    (b) he bets on terms that if his bet in respect of one contingency is successful the stake or winnings will be carried forward as the stake in respect of another contingency.
      (2) Where this section applies-
 
 
    (a) the person mentioned in subsection (1)(a) shall be treated for the purposes of sections 2 to 4 as making a separate bet on each contingency, and
 
    (b) each bet which depends on the result of an earlier bet shall be treated as being made at the time of that result.
      (3) This section does not apply where a person bets on more than one contingency if-
 
 
    (a) the betting takes the form of a single bet or of bets placed at a single time, and
 
    (b) the terms mentioned in subsection (1) do not permit the arrangement for carrying forward to be varied or terminated.
      (4) In subsection (1)(b) the reference to "the stake or winnings" includes a reference to-
 
 
    (a) any part of the stake,
 
    (b) any part of the winnings, and
 
    (c) any combination of stake and winnings.
Liability to pay.     5B. - (1) At the end of each accounting period all general betting duty chargeable in respect of bets made in the period shall become due.
 
      (2) In the case of bets made with a bookmaker in an accounting period the general betting duty shall 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 a bookmaker's permit for the business in the course of which the bets were made;
 
    (b) a person responsible for the management of that business;
 
    (c) where the bookmaker is a company, a director.
      (4) In the case of bets made in an accounting period by means of facilities provided by a person as described in section 4(1) to (3) the general betting duty shall be paid-
 
 
    (a) when it becomes due, and
 
    (b) by the person who provides the facilities.
      (5) This section is without prejudice to paragraph 2 of Schedule 1 to this Act or regulations made under it.
 
Bet-brokers.     5C. - (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 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 2 to 5B-
 
 
    (a) the bet shall be treated as if it were made by the bettor with the bet-broker and not with the bet-taker,
 
    (b) the bet-broker shall 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 shall be treated as being due to the bet-broker, and
 
    (d) a sum paid by the bet-taker by way of winnings in respect of the bet shall be treated as having been paid by the bet-broker at that time and for that purpose.
      (3) But subsection (2) does not apply to a bet if-
 
 
    (a) the bet-taker holds a bookmaker's permit, and
 
    (b) the bet would not be an on-course bet if the bet-broker were making the bet with the bet-taker as principal.
      (4) In the case of a bet which is excluded from subsection (2) by virtue of subsection (3), for the purposes of sections 2 to 5B-
 
 
    (a) the bet shall 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 shall 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 shall 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 shall be disregarded), and
 
    (d) a sum paid by the bet-taker by way of winnings in respect of the bet shall 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 shall be disregarded).
      (5) This section does not apply-
 
 
    (a) to bets made by way of pool betting, or
 
    (b) to bets made using facilities provided by a person holding (and relying on) a betting agency permit (within the meaning of section 9(2)(c)(ii) of the Betting, Gaming and Lotteries Act 1963).
      (6) 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 shall be treated as the bet-taker.
 
Accounting period.     5D. - (1) For the purposes of sections 2 to 5C-
 
 
    (a) each calendar month is an accounting period, but
 
    (b) the Commissioners may provide in regulations under paragraph 2 of Schedule 1 to this Act for some other specified period to be an accounting period.
      (2) Regulations made by virtue of subsection (1)(b) may-
 
 
    (a) make provision which applies generally or only in relation to a specified person or class of person;
 
    (b) make different provision for different purposes;
 
    (c) make transitional provision.".
     2. In section 6(1) of the Betting and Gaming Duties Act 1981 (pool betting duty) for "section 1(1)(c) above" substitute "section 4(3)".
 
     3. For section 9(3)(a) of that Act (protection of revenue) substitute-
 
 
    "(a) to any bet which is made by way of pool betting or coupon betting if-
 
      (i) the bet is not made by means of a totalisator,
 
      (ii) the promoter is in the Isle of Man,
 
      (iii) the bet is chargeable with a duty imposed by or under an Act of Tynwald which corresponds to pool betting duty, and
 
      (iv) the duty mentioned in sub-paragraph (iii) is chargeable on the bet at a rate not less than the appropriate rate of pool betting duty; or
 
    (aa) to any bet which is made with a bookmaker if-
 
      (i) it is not made by way of pool betting or coupon betting,
 
      (ii) the bookmaker is in the Isle of Man,
 
      (iii) a duty is imposed by or under an Act of Tynwald in respect of bookmaker's receipts from bets of that kind, and
 
      (iv) the rates and method of calculation of that duty result in no less duty being charged in respect of bets of that kind than is charged by way of general betting duty in respect of bets of that kind; or".
     4. Paragraph 2(4)(b) and (c) of Schedule 1 to that Act (general betting duty: administration: records) shall cease to have effect.
 
 
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