After that section insert—

“5AARelief 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.”.

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

“7ZARelief 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.”.

After section 5AA (inserted by section 6 above) insert—

“5ABBetting 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).”.

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

“17Bingo 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).

(4)

Bingo duty charged in respect of a person’s bingo promotion profits shall be paid by him.

(5)

Where the amount that would be charged in respect of a person’s bingo promotion profits for an accounting period is less than £1, no duty shall be charged.

18Accounting period

(1)

For the purposes of section 17 an accounting period ends, and another begins, at the end of the last Sunday in each calendar month.

(2)

But regulations under paragraph 9 of Schedule 3 to this Act may make provision in place of subsection (1) for the purposes of the application of section 17 to specified persons or in specified circumstances.

(3)

Regulations made by virtue of subsection (2) may make transitional provision.

19Bingo receipts

(1)

A person has bingo receipts for an accounting period if payments fall due in the period in respect of entitlement to participate in bingo promoted by him.

(2)

The amount of the person’s bingo receipts for the accounting period is the aggregate of those payments.

(3)

For the purposes of subsections (1) and (2)—

(a)

an amount in respect of entitlement to participate in a game of bingo is to be treated as falling due in the accounting period in which the game is played,

(b)

where a payment relates to a supply of services on which value added tax is chargeable, the amount of value added tax chargeable shall be disregarded (irrespective of whether or not that amount is paid by way of value added tax),

(c)

it is immaterial whether an amount falls due to be paid to the promoter or to another person,

(d)

it is immaterial whether an amount is described as a fee for participation, as a stake, or partly as one and partly as the other, and

(e)

where a sum is paid partly in respect of entitlement to participate in a game of bingo and partly in respect of another matter—

(i)

such part of the sum as is applied to, or properly attributable to, entitlement to participate in the game shall be treated as an amount falling due in respect of entitlement to participate in the game, and

(ii)

the remainder shall be disregarded.

20Expenditure on bingo winnings

(1)

A person’s expenditure on bingo winnings for an accounting period is the aggregate of the values of prizes provided by him in that period by way of winnings at bingo promoted by him.

(2)

Where a prize is obtained by the promoter from a person not connected with him, the cost to the promoter shall be treated as the value of the prize for the purpose of subsection (1).

(3)

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

(c)

does not fall within subsection (2),

the specified amount is the value of the voucher for the purpose of subsection (1).

(4)

Where a prize is a voucher (whether or not it falls within subsection (2)) it shall be treated as having no value for the purpose of subsection (1) if—

(a)

it does not satisfy subsection (3)(a) and (b), or

(b)

its use as described in subsection (3)(a) is subject to a specified restriction, condition or limitation which may make the value of the voucher to the recipient significantly less than the amount mentioned in subsection (3)(b).

(5)

In the case of a prize which—

(a)

is neither money nor a voucher, and

(b)

does not fall within subsection (2),

the value of the prize for the purpose of subsection (1) is—

(i)

the amount which the prize would cost the promoter if obtained from a person not connected with him, or

(ii)

where no amount can reasonably be determined in accordance with sub-paragraph (i), nil.

(6)

For the purpose of this section—

(a)

a reference to connection between two persons shall be construed in accordance with section 839 of the Income and Corporation Taxes Act 1988 (connected persons), and

(b)

an amount paid by way of value added tax on the acquisition of a thing shall be treated as part of its cost (irrespective of whether or not the amount is taken into account for the purpose of a credit or refund).

20ACombined bingo

(1)

A game of bingo is “combined bingo” if—

(a)

it is multiple bingo within the meaning of section 1 of the Gaming (Bingo) Act 1985, or

(b)

it is played in more than one place and promoted by more than one person.

(2)

Payments made in respect of entitlement to participate in combined bingo shall be treated for the purposes of section 19(1) as bingo receipts only of the first promoter to whom (or at whose direction) they are paid.

(3)

Where money representing stakes hazarded at combined bingo is paid in an accounting period by one promoter of the bingo (“the first promoter”) to another (“the second promoter”)—

(a)

the money shall not be treated as a bingo receipt of the second promoter for the purposes of section 19(1),

(b)

the payment shall be treated as expenditure of the first promoter on bingo winnings for the accounting period for the purposes of section 20(1), and

(c)

no subsequent payment of all or part of the money shall be treated as expenditure on bingo winnings for the purposes of section 20(1) (whether paid by the second promoter to another person, by the first promoter having received it from the second promoter, or otherwise).

(4)

Subsections (2) and (3) shall apply only where the combined bingo is played entirely in the United Kingdom.

20BCarrying losses forward

(1)

Where the calculation of a person’s bingo promotion profits for an accounting period results in a negative amount (“the loss”)—

(a)

no bingo duty shall be chargeable in respect of that accounting period, and

(b)

for the purpose of section 17(3), the amount of the person’s expenditure on bingo winnings for the next accounting period shall be increased by the amount of the loss.

(2)

Subsection (1) applies to an accounting period whether or not the loss results wholly or partly from the previous application of that subsection.

20CSupplementary

(1)

Part 2 of Schedule 3 to this Act (bingo duty: supplementary) shall have effect.

(2)

In sections 17 to 20B above, this section and Schedule 3—

“bingo” includes any version of that game, whatever name it is called,

“licensed bingo” means bingo played at premises licensed under—

(a)

the Gaming Act 1968, or

(b)

Chapter II of Part III of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985,

“prize” means anything won at bingo, and

“United Kingdom” includes the territorial sea of the United Kingdom.

(3)

For the purposes of those provisions, except in relation to combined bingo, the promoter of a game of bingo is—

(a)

in the case of licensed bingo, the holder of the licence, and

(b)

in the case of non-licensed bingo, the person who provides the facilities for the game.

(4)

For the purposes of those provisions in relation to combined bingo a person promotes a game of bingo if he is wholly or partly responsible for organising it or for providing facilities for it.

(5)

In those provisions a reference to entitlement to participate in a game of bingo includes a reference to an opportunity to participate in a game of bingo in respect of which a charge is made (whether by way of a fee for participation, a stake, or both).

(6)

In proceedings relating to bingo duty under the customs and excise Acts an averment in any process that a particular game is a version of bingo shall, until the contrary is proved, be sufficient evidence that it is.”.

For paragraph 2 of Schedule 3 to the Betting and Gaming Duties Act 1981 (bingo duty: exemptions: small-scale bingo) substitute—

“Small-scale bingo

2

(1)

This paragraph applies where entitlement to participate in non-licensed bingo depends on a person’s being—

(a)

a member of a group or organisation,

(b)

a guest of a member of a group or organisation, or

(c)

a guest of a group or organisation.

(2)

Payments in respect of entitlement to participate in the non-licensed bingo shall not be brought into account in relation to any person for the purpose of section 19.

(3)

Winnings at the non-licensed bingo shall not be brought into account in relation to any person for the purpose of section 20.

Small-scale bingo

2A

(1)

In the case of non-licensed bingo to which paragraph 2 does not apply—

(a)

payments in respect of entitlement to participate in the non-licensed bingo shall not be brought into account in relation to any person for the purpose of section 19 (subject to sub-paragraphs (2) to (5) below), and

(b)

winnings at the non-licensed bingo shall not be brought into account in relation to any person for the purpose of section 20 (subject to sub-paragraphs (2) to (5) below).

(2)

If on a day winnings at non-licensed bingo promoted by a person exceed £500, sub-paragraph (1) shall not apply in relation to the person in respect of the accounting period in which that day falls and the next two accounting periods.

(3)

If stakes exceeding in aggregate £500 are hazarded on a day at non-licensed bingo promoted by a person, sub-paragraph (1) shall not apply in relation to the person in respect of the accounting period in which that day falls and the next two accounting periods.

(4)

If in an accounting period winnings at non-licensed bingo promoted by a person exceed £7,500, sub-paragraph (1) shall not apply in relation to the person in respect of that accounting period and the next two accounting periods.

(5)

If stakes exceeding in aggregate £7,500 are hazarded in an accounting period at non-licensed bingo promoted by a person, sub-paragraph (1) shall not apply in relation to the person in respect of that accounting period and the next two accounting periods.

(6)

For the purposes of this paragraph winnings at bingo shall be valued in accordance with section 20(2) to (6).”.

In section 21 of the Betting and Gaming Duties Act 1981 (amusement machine licences), for subsections (3B) to (3D) (meaning of “fifty-penny machine”) substitute—

“(3B)

For the purposes of this section an amusement machine is a “fifty-penny machine” if, and only if—

(a)

where it is a machine on which a game can be played solo, the cost for each time the game is played on it solo—

(i)

does not exceed 50p, or

(ii)

where the machine provides differing numbers of games in different circumstances, cannot exceed 50p;

and

(b)

where it is a machine on which a game can be played by more than one person at a time, the cost per player for each time the game is played on it simultaneously by more than one player—

(i)

does not exceed 50p, or

(ii)

where the machine provides differing numbers of games in different circumstances, cannot exceed 50p.”.

In section 26(2) of that Act (interpretation), for the definitions of “two-penny machine”, “five-penny machine” and “ten-penny machine” substitute—

““two-penny machine” means an amusement machine in relation to which the cost for each time a game is played on it—

(a)

does not exceed 2p, or

(b)

where the machine provides differing numbers of games in different circumstances, cannot exceed 2p,

and “five-penny machine” and “ten-penny machine” have a corresponding meaning;”.

After that section insert—

“26AAmounts in currencies other than sterling

(1)

Any reference in this Part of this Act to a amount in sterling, in the context of—

(a)

the cost of playing a game, or

(b)

the amount of the prize for a game,

includes a reference to the equivalent amount in another currency.

(2)

The equivalent amount in another currency, in relation to any day, shall be determined by reference to the London closing exchange rate for the previous day.

(3)

For the purposes of determining what duty is payable on an amusement machine licence in a case where this section applies, the equivalent in another currency of an amount in sterling shall be taken to be its equivalent on the day on which the application for the licence is received by the Commissioners, or the due date in the case of a default licence.

(4)

In subsection (3) above—

“default licence” means a licence granted under paragraph 3(1) of Schedule 4A to this Act;

“due date” has the meaning given by paragraph 2(4) of that Schedule.”.

In section 24(5) of the Betting and Gaming Duties Act 1981 (c. 63) (penalty for unlicensed amusement machines), for paragraph (c) (liability of person responsible for, inter alia, issuing or exchanging coins etc for amusement machine) substitute—

“(c)

is a person responsible for controlling the use of any amusement machine on the premises, or”.

In Schedule 4A to that Act (unlicensed amusement machines), for paragraph (c) of paragraph 7(3) (which makes similar provision) substitute—

“(c)

responsible for controlling the use of any amusement machine on the premises, or”.

For the Table in section 11(2) of the Finance Act 1997 (c. 16) (rates of gaming duty) substitute—“

Table

Part of gross gaming yield	Rate
The first £502,500	2.5 per cent.
The next £1,115,500	12.5 per cent.
The next £1,115,500	20 per cent.
The next £1,953,000	30 per cent.
The remainder	40 per cent.”