2005 No. 3328

VALUE ADDED TAX

The Value Added Tax (Betting, Gaming and Lotteries) Order 2005

Approved by the House of Commons

Made

Laid before the House of Commons

Coming into force

The Treasury make the following Order in exercise of the powers conferred by sections 31(2) and 96(9) of the Value Added Tax Act 19941:

Citation and commencement1

This Order may be cited as the Value Added Tax (Betting, Gaming and Lotteries) Order 2005 and comes into force on 6th December 2005.

Variation of Group 4 of Schedule 92

For Note (3) to Group 4 of Schedule 9 to the Value Added Tax Act 19942 substitute—

3

”Gaming machine” means a machine which is designed or adapted for use by individuals to gamble (whether or not it can also be used for other purposes).

4

But—

a

a machine is not a gaming machine to the extent that it is designed or adapted for use to bet on future real events,

b

a machine is not a gaming machine to the extent that—

i

it is designed or adapted for the playing of bingo, and

ii

bingo duty is charged under section 17 of the Betting and Gaming Duties Act 19813 on the playing of that bingo, or would be charged but for paragraphs 1 to 5 of Schedule 3 to that Act, and

c

a machine is not a gaming machine to the extent that—

i

it is designed or adapted for the playing of a real game of chance, and

ii

the playing of the game is dutiable gaming for the purposes of section 10 of the Finance Act 19974, or would be dutiable gaming but for subsections (3) and (4) of that section.

5

In Notes (3) and (4)—

a

a reference to a machine is a reference to any apparatus which uses or applies mechanical power, electrical power or both,

b

a reference to a machine being designed or adapted for a purpose includes a reference to a machine to which anything has been done as a result of which it can reasonably be expected to be used for that purpose, and

c

a reference to a machine being adapted includes a reference to computer software being installed on it.

6

“To gamble” means to participate in—

a

gaming within the meaning of section 6 of the Gambling Act 20055, or

b

betting within the meaning of section 9 of that Act.

7

“Real” has the meaning given by section 353(1) of the Gambling Act 20056.

8

“Bingo” means any version of that game, irrespective of by what name it is described.

Joan RyanTom WatsonTwo of the Lords Commissioners of Her Majesty’s Treasury

(This note is not part of the Order)

This Order, which comes into force on 6th December 2005, amends Group 4 of Schedule 9 to the Value Added Tax Act 1994. Group 4 of Schedule 9 exempts from VAT supplies of betting, gaming and lotteries, subject to certain exceptions. One of these exceptions is the provision of a gaming machine. Note (3) to the Group defines “gaming machine”.

Article 2 of this Order replaces Note (3), extending the definition of gaming machine to all machines that are designed or adapted for gambling, subject to some limited exceptions.