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Finance Act 2003 (c. 14)

(The document as of February, 2008)

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Finance Act 2003

2003 CHAPTER 14

CONTENTS

Content
  1. Part 1

    Excise duties

    1. Tobacco products duty

      1. 1. Rates of tobacco products duty

    2. Alcoholic liquor duties

      1. 2. Rate of duty on beer

      2. 3. Rates of duty on wine and made-wine

    3. Hydrocarbon oil duties

      1. 4. Rates of hydrocarbon oil duties

      2. 5. Rebates on hydrocarbon oil duties

    4. Betting and gaming duties

      1. 6. General betting duty and pool betting duty: relief for losses

      2. 7. General betting duty: betting exchanges

      3. 8. General betting duty: restriction of exemption for on-course bets

      4. 9. Bingo duty

      5. 10. Amusement machines not operated by coins or tokens

      6. 11. Amusement machines: use of currencies other than sterling

      7. 12. Responsibility for unlicensed amusement machines

      8. 13. Rates of gaming duty

    5. Vehicle excise duty

      1. 14. Vehicle excise duty: rates

      2. 15. Disclosure for exemptions: Northern Ireland

      3. 16. Duty at higher rate: exception for tractive units

  2. Part 2

    Value added tax

    1. 17. Requirement of evidence or security

    2. 18. Joint and several liability for unpaid VAT of another trader

    3. 19. Face-value vouchers

    4. 20. Supplies arising from prior grant of fee simple

    5. 21. Business gifts

    6. 22. Non-business use of business property

    7. 23. Supply of electronic services in member States: special accounting scheme

  3. Part 3

    Taxes and duties on importation and exportation: penalties

    1. Preliminary

      1. 24. Introductory

    2. The penalties

      1. 25. Penalty for evasion

      2. 26. Penalty for contravention of relevant rule

      3. 27. Exceptions from section 26

      4. 28. Liability of directors etc where body corporate liable to penalty for evasion

    3. Reduction of amount of penalty

      1. 29. Reduction of penalty under section 25 or 26

    4. Demand notices

      1. 30. Demands for penalties

      2. 31. Time limits for demands for penalties

      3. 32. No prosecution after demand notice for penalty under section 26

    5. Reviews

      1. 33. Right to review of certain decisions

      2. 34. Time limit and right to further review

      3. 35. Powers of Commissioners on a review

    6. Appeals

      1. 36. Appeals to a tribunal

      2. 37. Appeal tribunals

    7. Evidence

      1. 38. Admissibility of certain statements and documents

    8. Miscellaneous and supplementary

      1. 39. Service of notices

      2. 40. Penalties not to be deducted for income tax or corporation tax purposes

      3. 41. Regulations and orders

  4. Part 4

    Stamp duty land tax

    1. Introduction

      1. 42. The tax

    2. Land transactions

      1. 43. Land transactions

      2. 44. Contract and conveyance

      3. 45. Contract and conveyance: effect of transfer of rights

      4. 46. Options and rights of pre-emption

      5. 47. Exchanges

    3. Chargeable interests, chargeable transactions and chargeable consideration

      1. 48. Chargeable interests

      2. 49. Chargeable transactions

      3. 50. Chargeable consideration

      4. 51. Contingent, uncertain or unascertained consideration

      5. 52. Annuities etc: chargeable consideration limited to twelve years' payments

      6. 53. Deemed market value where transaction involves connected company

      7. 54. Exceptions from deemed market value rule

    4. Amount of tax chargeable

      1. 55. Amount of tax chargeable: general

      2. 56. Amount of tax chargeable: rent

    5. Reliefs

      1. 57. Disadvantaged areas relief

      2. 58. Relief for certain exchanges of residential property

      3. 59. Relocation relief

      4. 60. Compulsory purchase facilitating development

      5. 61. Compliance with planning obligations

      6. 62. Group relief and reconstruction or acquisition relief

      7. 63. Demutualisation of insurance company

      8. 64. Demutualisation of building society

      9. 65. Incorporation of limited liability partnership

      10. 66. Transfers involving public bodies

      11. 67. Transfer in consequence of reorganisation of parliamentary constituencies

      12. 68. Charities relief

      13. 69. Acquisition by bodies established for national purposes

      14. 70. Right to buy transactions, shared ownership leases etc

      15. 71. Certain acquisitions by registered social landlord

      16. 72. Alternative property finance: land sold to financial institution and leased to individual

      17. 73. Alternative property finance: land sold to financial inst etc">82. Loss or destruction of, or damage to, return etc

      18. 83. Formal requirements as to assessments, penalty determinations etc

      19. 84. Delivery and service of documents

    6. Liability for and payment of tax

      1. 85. Liability for tax

      2. 86. Payment of tax

      3. 87. Interest on unpaid tax

      4. 88. Interest on penalties

      5. 89. Interest on repayment of tax overpaid etc

      6. 90. Application to defer payment in case of contingent or uncertain consideration

      7. 91. Collection and recovery of tax etc

      8. 92. Payment by cheque

    7. Compliance

      1. 93. Information powers

      2. 94. Power to inspect premises

      3. 95. Offence of fraudulent evasion of tax

      4. 96. Penalty for assisting in preparation of incorrect return etc

      5. 97. Power to allow further time and reasonable excuse for failure

      6. 98. Admissibility of evidence not affected by offer of settlement etc

      7. 99. General provisions about penalties

    8. Application of provisions

      1. 100. Companies

      2. 101. Unit trust schemes

      3. 102. Open-ended investment companies

      4. 103. Joint purchasers

      5. 104. Partnerships

      6. 105. Trustees

      7. 106. Persons acting in a representative capacity etc

      8. 107. Crown application

    9. Supplementary provisions

      1. 108. Linked transactions

      2. 109. General power to vary this Part by regulations

      3. 110. Approval of regulations under general power

      4. 111. Claim for repayment if regulations under general power not approved

      5. 112. Power to amend certain provisions before implementation

      6. 113. Functions conferred on "the Inland Revenue"

      7. 114. Orders and regulations made by the Treasury or the Inland Revenue

      8. 115. General and Special Commissioners, appeals and other proceedings

    10. Interpretation etc

      1. 116<

  5. Part 5

    Stamp duty

    1. 125. Abolition of stamp duty except on instruments relating to stock or marketable securities

    2. 126. Circumstances in which group relief withdrawn

    3. 127. Circumstances in which relief for company acquisitions withdrawn

    4. 128. Exemption of certain leases granted by registered social landlords

    5. 129. Relief for certain leases granted before section 128 has effect

    6. 130. Registered social landlords: treatment of certain leases granted between 1st January 1990 and 27 March 2000

  6. Part 6

    Income tax and corporation tax: charge and rate bands

    1. Income tax

      1. 131. Charge and rates for 2003-04

      2. 132. Indexed rate bands for 2003-04: PAYE deductions etc

    2. Corporation tax

      1. 133. Charge and main rate for financial year 2004

      2. 134. Small companies' rate and fraction for financial year 2003

      3. 135. Corporation tax starting rate and fraction for financial year 2003

  7. Part 7

    Income tax, corporation tax and capital gains tax: general

    1. Employment income and related matters

      1. 136. Provision of services through intermediary

      2. 137. Exemption where homeworker's additional expenses met by employer

      3. 138. Taxable benefits: lower threshold for cars with a CO2 emissions figure

      4. 139. Approved share plans and schemes

      5. 140. Employee securities and options

      6. 141. Corporation tax relief for employee share acquisitions

      7. 142. Ending of relief for contributions to QUESTS

      8. 143. Restriction of deductions for employee benefit contributions

      9. 144. PAYE on notional payments: reimbursement period

      10. 145. PAYE: regulations and notional payments

      11. 146. Payroll giving: extension of 10% supplement to 5th April 2004

      12. 147. Sub-contractor deductions etc: interest on late payment or repayment

    2. Taxation of non-resident companies and related matters

      1. 148. Meaning of "permanent establishment"

      2. 149. Non-resident companies: basis of charge to corporation tax

      3. 150. Non-resident companies: assessment, collection and recovery of corporation tax

      4. 151. Non-resident companies: extent of charge to income tax

      5. 152. Non-resident companies: transactions carried out through broker, investment manager or Lloyd's agent

      6. 153. General replacement of references to branch or agency of company

      7. 154. Double taxation relief: profits attributable to overseas permanent establishment

      8. 155. Consequential amendments

      9. 156. Overseas life insurance companies

    3. Chargeable gains

      1. 157. Life insurance policies and deferred annuity contracts

      2. 158. Application of market value rule in case of exercise of option

      3. 159. Reporting limits and annual exempt amount

      4. 160. Taper relief: assets qualifying as business assets

      5. 161. Earn-out rights to machinery">167. First-year allowances for expenditure on environmentally beneficial plant or machinery

      6. 168. Relief for research and development

      7. 169. Tonnage tax: extension of capital allowance restrictions on lessors of ships

    4. Life insurance and pensions

      1. 170. Insurance companies

      2. 171. Policies of life insurance etc: miscellaneous amendments

      3. 172. Charges under life insurance policies for exceptional risk of disability

      4. 173. Gains on policies of life insurance etc: rate of tax

      5. 174. Personal pension arrangements: limit on contributions

    5. Miscellaneous

      1. 175. Payments to adopters

      2. 176. Foster carers

      3. 177. Currency contracts and currency options

      4. 178. Loan relationships: amendments

      5. 179. Derivative contracts: transactions within groups

      6. 180. Contributions to urban regeneration companies

      7. 181. Repos etc

      8. 182. Relevant discounted securities: withdrawal of relief for costs and losses, etc

      9. 183. Court common investment funds

      10. 184. Intangible fixed assets: tax avoidance arrangements and related parties

  8. Part 8

    Other taxes

    1. Inheritance tax

      1. 185. Gifts with reservation

      2. 186. Authorised unit trusts, OEICs and common investment funds

    2. Landfill tax

      1. 187. Rate of landfill tax

    3. Climate change levy

      1. 188. Exemption for fuel used in recycling processes

      2. 189. CHP exemption to be based on current efficiency

      3. 190. Supplies not known to be taxable when made, etc

      4. 191. Deemed supplies

      5. 192. Amendments about registration, payment etc

      6. 193. Electricity from renewable sources etc

    4. Insurance premium tax

      1. 194. Higher rate of tax: divided companies

  9. Part 9

    Miscellaneous and supplementary provisions

    1. Provisions consequential on changes to company law

      1. 195. Companies acquiring their own shares

      2. 196. Companies in administration

    2. International matters

      1. 197. Exchange of information between tax authorities of member States

      2. 198. Arrangements for mutual exchange of tax information

      3. 199. Savings income: Community obligations and international arrangements

      4. 200. Controlled foreign companies: exempt activities

      5. 201. Application of CFC provisions to Hong Kong and Macao companies

    3. Administrative matters

      1. 202. Deduction of tax from interest: recognised clearing houses etc

      2. 203. Authorised unit trusts: interest distributions paid gross

      3. 204. Mandatory electronic payment by large employers

      4. 205. Use of electronic means of payment under other provisions

      5. 206. Admissibility of evidence not affected by offer of settlement etc

      6. 207. Consequential claims etc

    4. National Savings

      1. 208. Ordinary accounts and investment accounts

      2. 209. Abolition of accounting requirements relating to investment deposits

    5. Other financial matters

      1. 210. Payments for service of national debt

      2. 211. Definition of liabilities and assets of National Loans Fund

      3. 212. Accounts of Consolidated Fund and National Loans Fund

      4. 213. Debt Management Account: abolition of borrowing cap

      5. 214. Payments in error from or to National Loans Fund

    6. Supplementary

      1. 215. Interpretation

      2. 216. Repeals

      3. 217. Short title

    1. Schedule 1

      VAT: face-value vouchers

    2. Schedule 2

      Supply of electronic services in member States: VAT special accounting scheme

    3. Schedule 3

      Stamp duty land tax: transactions exempt from charge

    4. Schedule 4

      Stamp duty land tax: chargeable consideration

    5. Schedule 5

      Stamp duty land tax: amount of tax chargeable: rent

    6. Schedule 6

      Stamp duty land tax: disadvantaged areas relief

      1. Part 1

        Disadvantaged areas

      2. Part 2

        Land wholly situated in a disadvantaged area

      3. Part 3

        Land partly situated in a disadvantaged area

      4. Part 4

        Interpretation

    7. Schedule 7

      Stamp duty land tax: group relief and reconstruction and acquisition reliefs

      1. Part 1

        Group relief

      2. Part 2

        Reconstruction and acquisition reliefs

    8. Schedule 8

      Stamp duty land tax: charities relief

    9. Schedule 9

      Stamp duty land tax: right to buy, shared ownership leases etc

    10. Schedule 10

      Stamp duty land tax: returns, enquiries, assessments and appeals

      1. Part 1

        Land transaction returns

      2. Part 2

        Duty to keep and preserve records

      3. Part 3

        Enquiry into return

      4. Part 4

        Revenue determination if no return delivered

      5. Part 5

        Revenue assessments

      6. Part 6

        Relief in case of excessive assessment

      7. Part 7

        Appeals against Revenue decisions on tax

    11. Schedule 11

      Stamp duty land tax: self-certificates

      1. Part 1

        General

      2. Part 2

        Duty to keep and preserve records

      3. Part 3

        Enquiry into self-certificate

    12. Schedule 12

      Stamp duty land tax: collection and recovery of tax

      1. Part 1

        General

      2. Part 2

        Court proceedings

    13. Schedule 13

      Stamp duty land tax: information powers

      1. Part 1

        Power of authorised officer to call for documents or information from taxpayer

      2. Part 2

        Power of authorised officer to call for documents from third party

      3. Part 3

        Power to call for papers of tax accountant

      4. Part 4

        Restrictions on powers under Parts 1 to 3

      5. Part 5

        Powers of board to call for documents or information

      6. Part 6

        Order of judicial authority for the delivery of documents

      7. Part 7

        Entry with warrant to obtain evidence of offence

      8. Part 8

        Falsification etc of documents

    14. Schedule 14

      Stamp duty land tax: determination of penalties and related appeals

    15. Schedule 15

      Stamp duty land tax: partnerships

      1. Part 1

        General provisions

      2. Part 2

        Ordinary partnership transactions

      3. Part 3

        Transactions excluded from stamp duty land tax

    16. Schedule 16

      Stamp duty land tax: trusts and powers

    17. Schedule 17

      Stamp duty land tax: General and Special Commissioners, appeals and other proceedings

    18. Schedule 18

      Stamp duty land tax: consequential amendments

    19. Schedule 19

      Stamp duty land tax: commencement and transitional provisions

    20. Schedule 20

      Stamp duty: restriction to instruments relating to stock or marketable securities

      1. Part 1

        Supplementary provisions

      2. Part 2

        Consequential amendments and repeals

    21. Schedule 21

      Approved share plans and schemes

      1. Part 1

        Share incentive plans

      2. Part 2

        SAYE option schemes

      3. Part 3

        CSOP schemes

    22. Schedule 22

      Employee securities and options

    23. Schedule 23

      Corporation tax relief for employee share acquisition

      1. Part 1

        General provisions

      2. Part 2

        Award of shares

      3. Part 3

        Grant of option

      4. Part 4

        Provisions applying in case of shares subject to forfeiture

      5. Part 5

        Supplementary provisions

      6. Part 6

        Commencement and transitional provisions

    24. Schedule 24

      Restriction of deductions for employee benefit contributions

    25. Schedule 25

      Determination of profits attributable to permanent establishment: supplementary provisions

    26. Schedule 26

      Non-resident companies: transactions through broker, investment manager or Lloyd's agent

    27. Schedule 27

      Permanent establishment etc: consequential amendments

    28. Schedule 28

      Capital gains tax: reporting limits and annual exempt amount

      1. Part 1

        Reporting limits

      2. Part 2

        Annual exempt amount

      3. Part 3

        Commencement

    29. Schedule 29

      Transfers of value: attribution of gains to beneficiaries

    30. Schedule 30

      First-year allowances for expenditure on environmentally beneficial plant or machinery

    31. Schedule 31

      Tax relief for expenditure on research and development

      1. Part 1

        Small and medium-sized enterprises: Schedule 20 to Finance Act 2000

      2. Part 2

        Large companies: Part 1 of Schedule 12 to Finance Act 2002

      3. Part 3

        Work sub-contracted to SMEs: Part 2 of Schedule 12 to Finance Act 2002

      4. Part 4

        Entitlement of SME to certain relief available to large companies

      5. Part 5

        Supplementary: amendments to Parts 3 to 6 of Schedule 12 to Finance Act 2002

      6. Part 6

        Expenditure on vaccine research etc: Schedule 13 to Finance Act 2002

    32. Schedule 32

      Tonnage tax: restrictions on capital allowances for lessors of ships

    33. Schedule 33

      Insurance companies

    34. Schedule 34

      Policies of life insurance etc: miscellaneous amendments

      1. Part 1

        Group life policies

      2. Part 2

        Charitable and non-charitable trusts

      3. Part 3

        Meaning of "life annuity"

      4. Part 4

        Rollover of gain on maturity into new policy

    35. Schedule 35

      Gains on policies of life insurance etc: rate of tax

    36. Schedule 36

      Foster carers

      1. Part 1

        Introduction

      2. Part 2

        The exemption and the alternative methods of calculation

      3. Part 3

        Capital allowances

      4. Part 4

        Supplementary

    37. Schedule 37

      Loan relationships: amendments

      1. Part 1

        Amendments to Schedule 9 to the Finance Act 1996

      2. Part 2

        Transitional provisions

    38. Schedule 38

      Sale and repurchase of securities etc

    39. Schedule 39

      Relevant discounted securities: withdrawal of relief for costs and losses, etc

    40. Schedule 40

      Acquisition by company of its own shares

    41. Schedule 41

      Companies in administration

    42. Schedule 42

      Controlled foreign companies: exempt activities

    43. Schedule 43

      Repeals

      1. Part 1

        Excise duties

      2. Part 2

        Value added tax

      3. Part 3

        Income tax, corporation tax and capital gains tax

      4. Part 4

        Other taxes

      5. Part 5

        Miscellaneous

An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with finance.

[10th July 2003]

Most Gracious Sovereign,

We , Your Majesty's most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty's public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and to grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:--



Part 1 Excise duties

Tobacco products duty

1 Rates of tobacco products duty

(1) For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979 (c. 7) substitute--

" Table
1. CigarettesAn amount equal to 22 per cent of the retail price plus £96.88 per thousand cigarettes.
2. Cigars£141.10 per kilogram.
3. Hand-rolling tobacco£101.42 per kilogram.
4. Other smoking tobacco and chewing tobacco£62.03 per kilogram. "

(2) This section shall be deemed to have come into force at 6 o'clock in the evening of 9th April 2003.



Alcoholic liquor duties

2 Rate of duty on beer

(1) In section 36(1AA)(a) of the Alcoholic Liquor Duties Act 1979 (c. 4) (rate of duty on beer), for "£11.89" substitute "£12.22".

(2) This section shall be deemed to have come into force at midnight on 13th April 2003.

3 Rates of duty on wine and made-wine

(1) For Part 1 of the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979 (rates of duty on wine and made-wine) substitute--



" Part 1 Wine and made-wine of a strength not exceeding 22 per cent
Description of wine or made-wineRates of duty per hectolitre
£
Wine or made-wine of a strength not exceeding 4 per cent48.91
Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent67.25
Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not sparkling158.69
Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent but less than 8.5 per cent166.70
Sparkling wine or sparkling made-wine of a strength of 8.5 per cent or of a strength exceeding 8.5 per cent but not exceeding 15 per cent220.54
Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent211.58 "

(2) This section shall be deemed to have come into force at midnight on 13th April 2003.



Hydrocarbon oil duties

4 Rates of hydrocarbon oil duties

(1) In section 6(1A) of the Hydrocarbon Oil Duties Act 1979 (c. 5) (rates of duty)--

(a) in paragraph (a) (ultra low sulphur petrol) for "£0.4582" substitute "£0.4710",

(b) in paragraph (b) (other light oil) for "£0.5468" substitute "£0.5620",

(c) in paragraph (c) (ultra low sulphur diesel) for "£0.4582" substitute "£0.4710", and

(d) in paragraph (d) (other heavy oil) for "£0.5182" substitute "£0.5327".

(2) In section 6AA(3) of that Act (biodiesel duty) for "£0.2582" substitute "£0.2710".

(3) In section 13A(1) of that Act (rebate on unleaded petrol) for "£0.0586" substitute "£0.0601".

(4) This section shall come into force on 1st October 2003.

5 Rebates on hydrocarbon oil duties

(1) In section 11(1) of the Hydrocarbon Oil Duties Act 1979 (rebate on heavy oil)--

(a) in paragraph (a) (fuel oil) for "£0.0274" substitute "£0.0382",

(b) in paragraph (b) (gas oil: general) for "£0.0313" substitute "£0.0422", and

(c) in paragraph (ba) (ultra low sulphur diesel) for "£0.0313" substitute "£0.0422".

(2) In section 14(1) of that Act (furnace fuel) for "£0.0274" substitute "£0.0382".

(3) This section shall be deemed to have come into force at 6 o'clock in the evening of 9th April 2003.



Betting and gaming duties

<<<< >>>>

6 General betting duty and pool betting duty: relief for losses

(1) Part 1 of the Betting and Gaming Duties Act 1981 (c. 63) (betting duties) is amended as follows.

(2) In section 5 (net stake receipts) at the end of subsection (3) (negative net stake receipts to be disregarded) insert "except as provided for by section 5AA".

(3) After that section insert--

" 5AA Relief for losses

(1) This section applies where the amount of a person's net stake receipts for an accounting period in respect of a class of bets (calculated in accordance with section 5(1)) is a negative amount.

(2) That amount shall be carried forward to the following accounting period and, to the extent that it does not exceed it, deducted from the amount of the person's net stake receipts in respect of the same class of bets for that period.

(3) If the amount of those net stake receipts for that following accounting period--

(a) is not a positive amount, or

(b) is less than the amount carried forward,

the amount carried forward or, as the case may be, the balance of it shall be treated for the purposes of this section as if it were a negative amount of net stake receipts for that period in respect of the same class of bets. " .

(4) Omit section 5A (multiple bets) (which becomes unnecessary as a result of the amendment made by subsection (3) above).

(5) After section 7 (duty charged on net pool betting receipts) insert--

" 7ZA Relief for losses

(1) This section applies where the amount of a person's net pool betting receipts for an accounting period is a negative amount.

(2) That amount shall be carried forward to the following accounting period and, to the extent that it does not exceed it, deducted from the amount of the person's net pool betting receipts for that period.

(3) If the amount of the net pool betting receipts for that following accounting period--

(a) is not a positive amount, or

(b) is less than the amount carried forward,

the amount carried forward or, as the case may be, the balance of it shall be treated for the purposes of this section as if it were a negative amount of net pool betting receipts for that period. " .

(6) The amendments made by this section apply in relation to any accounting period beginning on or after 1st September 2003 for which the net stake receipts in respect of a particular class of bets, or (as the case may be) the net pool betting receipts, is a negative amount.

7 General betting duty: betting exchanges

(1) Part 1 of the Betting and Gaming Duties Act 1981 (c. 63) (betting duties) is amended as follows.

(2) After section 5AA (inserted by section 6 above) insert--

" 5AB Betting exchanges

(1) This section applies where--

(a) one person makes a bet with another person using facilities provided by a third person in the course of a business, and

(b) that business is one that does not involve the provision of premises for use by persons making or taking bets.

(2) General betting duty shall be charged on the amounts ("commission charges") that the parties to the bet are charged, whether by deduction from winnings or otherwise, for using those facilities.

(3) No deductions shall be allowed from commission charges.

(4) The amount of duty charged under this section in respect of bets determined in an accounting period shall be 15 per cent of the commission charges relating to those bets.

(5) For the purposes of this section, and section 5B(4) so far as relating to this section, a person who arranges for facilities relating to a bet to be provided by another person shall be treated as providing them himself (and the other person shall not). " .

(3) In section 5B (liability to pay)--

(a) for subsection (1) substitute--

" (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 5AB, bets determined in an accounting period,

shall become due at the end of that period. " ;

(b) in subsection (4), after "section 4(1) to (3)" insert "or 5AB".

(4) In section 5C (bet-brokers)--

(a) in paragraph (a) of subsection (1) (application of section) after "in the course of a business" insert ", other than a betting-exchange business,";

(b) at the end of that subsection insert--

" In paragraph (a) "betting-exchange business" means a business such as is mentioned in section 5AB(1). " ;

(c) omit subsections (2) (bet treated as made between bettor and bet-broker) and (3) (subsection (2) not to apply to off-course bets where bet-taker is a bookmaker);

(d) in subsection (4) omit the words "In the case of a bet which is excluded from subsection (2) by virtue of subsection (3),".

(5) The amendments made by this section apply in relation to any accounting period beginning on or after 1st June 2003.

(6) Those amendments do not apply in relation to a bet (a "straddling bet") that is--

(a) made, using facilities provided by a person ("the broker"), in an accounting period of the broker beginning before 1st June 2003, but

(b) not determined until an accounting period of the broker beginning on or after that date.

(7) Any winnings paid in respect of a straddling bet to which section 5AB of the Betting and Gaming Duties Act 1981 (c. 63) would apply but for subsection (6) above shall be treated for the purposes of that Act as paid in the broker's accounting period in which the bet was made ("the earlier accounting period").

(8) Subsection (7) shall not have effect to reduce the general betting duty payable by the broker for the earlier accounting period; but the amount of the reduction that would (but for this subsection) have been made for that period shall be set against any liability of the broker to general betting duty for accounting periods in the following three years, taking earlier periods before later ones until the amount is exhausted.

8 General betting duty: restriction of exemption for on-course bets

(1) In section 12(4) of the Betting and Gaming Duties Act 1981 (general betting duty: supplementary provisions), in the definition of "on-course bet" for "a meeting" substitute "a horse or dog race meeting".

(2) This section applies to bets made on or after 1st September 2003.

9 Bingo duty

(1) For sections 17 to 20 of the Betting and Gaming Duties Act 1981 (bingo duty) substitute--

" 17 Bingo duty

(1) A duty of excise, to be known as bingo duty, shall be charged--

(a) on the playing of bingo in the United Kingdom, and

(b) at the rate of 15 per cent of a person's bingo promotion profits for an accounting period.

(2) Subsection (1) is subject to the exemptions specified in Part 1 of Schedule 3 to this Act.

(3) The amount of a person's bingo promotion profits for an accounting period is--

(a) the amount of the person's bingo receipts for the period (calculated in accordance with section 19), minus

(b) the amount of his expenditure on bingo winnings for the period (calculated in accordance with section 20).

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