Budget Resolutions and Economic Situation — 23 Apr 2002 at 22:00

Question accordingly agreed to.

Resolved,

(1) That it is expedient to amend the law with respect to the National Debt and the public revenue and to make further provision in connection with finance.

(2) Subject to paragraph (3) below, this Resolution does not extend to the making of any amendment with respect to value added tax so as to provide-

(a) for zero-rating or exempting a supply, acquisition or importation;

(b) for refunding an amount of tax;

(c) for any relief, other than a relief that-

(i) so far as it is applicable to goods, applies to goods of every description, and

(ii) so far as it is applicable to services, applies to services of every description.

(3) Paragraph (2) above does not exclude the making of amendments with respect to value added tax providing for relief on the acquisition from another member State of any goods in relation to which, if they were imported from a place outside the member States, relief would be given by an order under section 37 of the Value Added Tax Act 1994.

Mr. Speaker then, pursuant to Standing Order No. 51(3) (Ways and Means Motions), put forthwith the Questions necessary to dispose of the further motions.

2. Rates of tobacco products duty

Resolved,

That-

(1) For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979 there shall be substituted-

(2) This Resolution shall have effect as from 6 o'clock in the evening of 17th 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.

3. Rates of duty on cider

Resolved,

That-

(1) In section 62(1A) of the Alcoholic Liquor Duties Act 1979-

(a) in paragraph (b), for "£39.21" there shall be substituted "£38.43";

(b) in paragraph (c), for "£26.13" there shall be substituted "£25.61".

(2) This Resolution shall have effect as from 28th 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.

4. Duty on beverages made with spirits

Resolved,

That-

(1) Section 1(9) of the Alcoholic Liquor Duties Act 1979 shall be omitted.

(2) This Resolution shall come into force on 28th 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.

5. Beer (small breweries: reduced rates of duty)

Resolved,

That-

(1) In subsection (1) of section 36 of the Alcoholic Liquor Duties Act 1979, for "at the rate of £11.89 per hectolitre per cent of alcohol in the beer" there shall be substituted "at the rates specified in subsection (1AA) below".

(2) In that section, after that subsection there shall be inserted- "(1AA) The rates at which the duty shall be charged are-

(a) in the case of beer that is not small brewery beer, £11.89 per hectolitre per cent of alcohol in the beer;

(b) in the case of small brewery beer produced in a singleton brewery, the rate per hectolitre per cent of alcohol in the beer that is given by section 36D below;

(c) in the case of small brewery beer produced in a co-operated brewery, the rate per hectolitre per cent of alcohol in the beer that is given by section 36F below.".

(3) In that Act, after that section (and before the heading "Reliefs from excise duty") there shall be inserted-

"Reduced rates of excise duty

36A Beer from small breweries: introductory

(1) For the purposes of section 36(1AA) above (but subject to subsection (2) below)-

(a) whether beer produced in a singleton brewery is "small brewery beer" is determined in accordance with section 36C below, and

(b) whether beer produced in a co-operated brewery is "small brewery beer" is determined in accordance with section 36E below.

(2) Beer is not small brewery beer if it is produced by a person on any premises in circumstances in which he is required to be, but is not, registered under section 47 below in respect of those premises.

36B Interpretation of provisions relating to small brewery beer

(1) The following provisions of this section have effect for the purposes of section 36(1AA) above, section 36A above, this section and sections 36C to 36F below.

(2) A brewery is a "singleton brewery" at any particular time in a calendar year if it is not a co-operated brewery at that time.

(3) A brewery is a "co-operated brewery" at any particular time in a calendar year if-

(a) a person who produces beer in the brewery at that time or any earlier time in that year, or

(b) a person connected with such a person,

also produces beer in any other brewery at that time or any earlier time in that year.

(4) "Brewery" means premises (whether or not in the United Kingdom) on which beer is produced and that are situated physically apart from any other premises on which beer is produced.

(5) "The standard beer duty rate" means the rate of duty specified by section 36(1AA)(a) above.

(6) References to "the grossed-up amount" of an estimate of the amount of a brewery's production in a calendar year are to the amount given by- E (365–N) x 365

where-

E is the amount of the estimate, and

N is the number of days (if any) in the calendar year before the brewery begins to be used as beer-production premises.

(7) References to a brewery being used as beer-production premises are, in the case of a brewery in the United Kingdom, to there being at least one person who is required to be registered under section 47 below in respect of the brewery.

(8) Any question whether a person is connected with another shall be determined in accordance with section 839 of the Income and Corporation Taxes Act 1988.

36C Meaning of "small brewery beer" beer from singleton breweries

(1) section applies to beer produced in a brewery at a time in a calendar year ("the current year") when the brewery is a singleton brewery.

(2) beer is "small brewery beer" if the following conditions are satisfied; but this is subject to subsections (9) and (10) below.

(3) The first condition is that either-

(a) no beer was produced in the brewery in the previous calendar year ("the previous year"), or

(b) the amount of beer produced in the brewery in the previous year was not more than 30,000 hectolitres.

(4) For the purposes of subsection (3)(b) above, where the brewery was in use as beer-production premises during part only of the previous year, the amount of beer produced in the previous year in the brewery shall be taken to have been- A D x 365

where-

A is the amount of beer actually produced in the previous year in the brewery, and

D is the number of days in that part of the previous year.

(5) The second condition is that the amount of the estimate under subsection (9) below of the brewery's production in the current year is not more than 30,000 hectolitres.

(6) The third condition is that if the brewery begins to be used as beer-production premises part-way through the current year, the grossed-up amount of that estimate is not more than 30,000 hectolitres.

(7) The fourth condition is that less than half of the beer produced in the brewery in the previous year was produced under licence.

(8) The fifth condition is that the beer is not produced under licence.

(9) Beer produced in the brewery in the current year before the person who first produces beer in the brewery in that year has made a reasonable estimate of the amount of beer that will be produced in the brewery in that year is not small brewery beer.

(10) Beer produced in the brewery in the current year after the amount of beer produced in the brewery in the current year has reached 30,000 hectolitres is not small brewery beer.

(11) Subsection (10) above is without prejudice to section 167(4) of the Customs and Excise Management Act 1979 (recovery of duty unpaid by reason of untrue document or statement).

36D Rate of duty for small brewery beer from singleton breweries

(1) This section applies to small brewery beer produced in a brewery at a time in a calendar year ("the current year") when the brewery is a singleton brewery.

(2) The rate of duty in the case of that beer ("the brewery rate") is determined in accordance with this section.

(3) Subsection (4) below applies if-

(a) beer was produced in the brewery in the previous calendar year ("the previous year") and the amount produced in the brewery in that year was not more than 5,000 hectolitres, or

(b) no beer was produced in the brewery in the previous year and the grossed-up amount of the estimate under section 36C(9) above of the brewery's production in the current year is not more than 5,000 hectolitres.

(4) If this subsection applies, "the brewery rate" is 50% of the standard beer duty rate at the time concerned; but this is subject to rounding under subsection (7) below.

(5) Subsection (6) below applies if-

(a) beer was produced in the brewery in the previous year and the amount produced in the brewery in that year was more than 5,000 hectolitres but not more than 30,000 hectolitres, or

(b) no beer was produced in the brewery in the previous year and the grossed-up amount of the estimate under section 36C(9) above of the brewery's production in the current year is more than 5,000 hectolitres but not more than 30,000 hectolitres.

(6) If this subsection applies, "the brewery rate" is, subject to rounding under subsection (7) below, given by- P–2,500 Px the standard beer duty rate at the time concerned

where-

if this subsection applies by reason of subsection (5)(a) above, P is the amount, in hectolitres, of beer produced in the brewery in the previous year, and

if this subsection applies by reason of subsection (5)(b) above, P is the grossed-up amount (expressed in hectolitres) mentioned in subsection (5)(b).

(7) Where a rate given by subsection (4) or (6) above would (apart from this subsection) not be a whole number of pennies, the rate given by that subsection shall be taken to be the rate actually given by that subsection rounded up to the nearest penny.

(8) Where the brewery was in use as beer-production premises during part only of the previous year, for the purposes of subsections (3)(a), (5)(a) and (6) above the amount of beer produced in the brewery in the previous year shall be taken to have been- A D x 365

where-

A is the amount of beer actually produced in the previous year in the brewery, and

D is the number of days in that part of the previous year.

36E Meaning of "small brewery beer": beer from co-operated breweries

(1) This section applies to beer produced in a brewery at a time in a calendar year ("the current year") when the brewery is a co-operated brewery.

(2) The beer is "small brewery beer" if the following conditions are satisfied; but this is subject to subsections (10) and (11) below.

(3) In this section-

"the group" means the group of breweries consisting of-

(a) the co-operated brewery, and

(b) every brewery (other than the co-operated brewery) in which beer is produced at the time mentioned in subsection (1) above, or at any earlier time in the current year, by-

(i) a person who produces beer in the co-operated brewery at the time so mentioned or at any earlier time in the current year, or

(ii) a person connected with such a person;

"group brewery" means a brewery that is in the group;

"the previous year" means the calendar year immediately preceding the current year.

(4) The first condition is that either-

(a) no beer was produced in the previous year in the group, or

(b) the amount given by PY+GE is not more than 30,000 hectolitres, where-

PY is the amount of beer produced in the previous year in the group, and

GE is the aggregate of the grossed-up amount of each estimate that-

(i) is an estimate for the purposes of subsection (10) below of the amount of the production in the current year in a group brewery in which no beer was produced in the previous year, and

(ii) is made no later than the time mentioned in subsection (1) above.

(5) For the purposes of subsection (4)(b) above, where a group brewery was in use as beer-production premises during part only of the previous year, the amount of beer produced in the previous year in that brewery shall be taken to have been- A D x 365

where-

A is the amount of beer actually produced in the previous year in that brewery, and

D is the number of days in that part of the previous year.

(6) The second condition is that the aggregate of each estimate that-

(a) is an estimate for the purposes of subsection (10) below of the amount of a group brewery's production in the current year, and

(b) is made no later than the time mentioned in subsection (1) above,

is not more than 30,000 hectolitres.

(7) The third condition is that if any group brewery begins to be used as beer-production premises part-way through the current year, the aggregate of the grossed-up amount of each estimate that-

(a) is an estimate for the purposes of subsection (10) below of the amount of a group brewery's production in the current year, and

(b) is made no later than the time mentioned in subsection (1) above,

is not more than 30,000 hectolitres.

(8) The fourth condition is that less than half of the beer produced in the previous year in each group brewery was produced under licence.

(9) The fifth condition is that the beer is not produced under licence.

(10) Beer produced in the co-operated brewery at an unestimated time is not small brewery beer; and here "unestimated time" means a time in the current year when there is a group brewery for which there does not exist a reasonable estimate, made by the person who first produces beer in that brewery in that year, of the amount of beer that will be produced in that brewery in that year.

(11) Beer produced in the co-operated brewery in the current year after the amount of beer produced in the group in the current year has reached 30,000 hectolitres is not small brewery beer.

(12) Subsection (11) above is without prejudice to section 167(4) of the Customs and Excise Management Act 1979 (recovery of duty unpaid by reason of untrue document or statement).

36F Rate of duty for small brewery beer from co-operated breweries

(1) This section applies to small brewery beer produced in a brewery at a time in a calendar year ("the current year") when the brewery is a co-operated brewery.

(2) The rate of duty in the case of that beer ("the brewery rate") is determined in accordance with this section.

(3) In this section-

"the group" means the group of breweries consisting of-

(a) the co-operated brewery, and

(b) every brewery (other than the co-operated brewery) in which beer is produced at the time mentioned in subsection (1) above, or at any earlier time in the current year, by-

(i) a person who produces beer in the co-operated brewery at the time so mentioned or at any earlier time in the current year, or

(ii) a person connected with such a person;

"group brewery" means a brewery that is in the group;

"the previous year" means the calendar year immediately preceding the current year;

"the notional previous year's production" has the meaning given by subsection (4) below.

(4) In this section "the notional previous year's production" means the amount, in hectolitres, given by PY + GE where-

PY is the amount of beer produced in the group in the previous year, and

GE is the aggregate of the grossed-up amount of each estimate that-

(a) is an estimate for the purposes of section 36E(10) above of the amount of the production in the current year in a group brewery in which no beer was produced in the previous year, and

(b) is made no later than the time mentioned in subsection (1) above.

(5) Where a group brewery was in use as beer-production premises during part only of the previous year, in calculating PY for the purposes of subsection (4) above the amount of beer produced in that brewery in the previous year shall be taken to have been- A D x 365

where-

A is the amount of beer actually produced in the previous year in that brewery, and

D is the number of days in that part of the previous year.

(6) Subsection (7) below applies if-

(a) beer was produced in at least one group brewery in the previous year and the notional previous year's production is not more than 5,000 hectolitres, or

(b) no beer was produced in the group in the previous year and the aggregate of each estimate that-

(i) is an estimate for the purposes of section 36E(10) above of the amount of a group brewery's production in the current year, and

(ii) is made no later than the time mentioned in subsection (1) above,

is not more than 5,000 hectolitres.

(7) If this subsection applies, "the brewery rate" is 50% of the standard rate at the time mentioned in subsection (1) above; but this is subject to rounding under subsection (10) below.

(8) Subsection (9) below applies if-

(a) beer was produced in at least one group brewery in the previous year and the notional previous year's production is more than 5,000 hectolitres but not more than 30,000 hectolitres, or

(b) no beer was produced in the group in the previous year and the aggregate mentioned in subsection (6)(b) above is more than 5,000 hectolitres but not more than 30,000 hectolitres.

(9) If this subsection applies, "the brewery rate" is, subject to rounding under subsection (10) below, given by- P–2,500 Px the standard rate

where-

if this subsection applies by reason of subsection (8)(a) above, P is the previous year's notional production,

if this subsection applies by reason of subsection (8)(b) above, P is the amount, in hectolitres, of the aggregate mentioned in subsection (6)(b) above, and

"the standard rate" means the standard beer duty rate at the time mentioned in subsection (1) above.

(10) Where a rate given by subsection (7) or (9) above would (apart from this subsection) not be a whole number of pennies, the rate given by that subsection shall be taken to be the rate actually given by that subsection rounded up to the nearest penny.

36G Assessments where incorrectly low rate of duty applied

(1) Subsection (3) below applies if-

(a) duty is charged by section 36 above on any beer, and

(b) it appears at the excise duty point that the beer is small brewery beer for the purposes of section 36(1AA) above, but

(c) it turns out that the beer was not small brewery beer for those purposes (because, for example, circumstances were not as they appeared at that point or they subsequently changed).

(2) Subsection (3) below also applies if-

(a) duty is charged by section 36 above on any beer that is small brewery beer for the purposes of section 36(1AA) above, and

(b) the rate of duty that at the excise duty point appeared to be the correct rate turns out to have been lower than the correct rate (because, for example, circumstances were not as they appeared at that point or they subsequently changed).

(3) In any such case the Commissioners-

(a) may assess the amount that is the difference between-

(i) the actual amount of the duty charged on the beer by section 36 above, and

(ii) the lower amount that, at the excise duty point, appeared to be the amount charged,

as being excise duty due from the person liable to pay the duty charged on the beer by section 36 above, and

(b) may notify him or his representative accordingly.

(4) Where two or more persons are liable to pay the duty charged on the beer-

(a) the reference in subsection (3)(a) above to the person liable to pay the duty is to any one or more of those persons, and

(b) the reference in subsection (3)(b) above to notifying the person liable or his representative is to notifying each person assessed or his representative.".

(4) In the Finance Act 1994-

(a) in section 12A(3)(bb), for "or 11" there shall be substituted ", 11 or 36G";

(b) in section 12B(2), after paragraph (eb) there shall be inserted-

"(ec) in the case of an assessment under section 36G of that Act, the time at which the requirement to pay the duty took effect (which time, in a case where there was an excise duty point for the beer fixed under section 1 of the Finance (No. 2) Act 1992, is that excise duty point);"; and

(c) in section 14(1)(ba), for "or 11" there shall be substituted ", 11 or 36G".

(5) This Resolution shall come into force on 1st June 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.

6. Biodiesel

Resolved,

That provision may be made-

(a) imposing an excise duty on biodiesel and mixtures containing biodiesel,

(b) for the application in relation to biodiesel of the provisions of the enactments relating to hydrocarbon oil or any description of hydrocarbon oil, and

(c) defining biodiesel for those purposes and conferring power to amend the definition by order.

7. Hydrocarbon oil duties (rebates)

Resolved,

That provision may be made as to the meaning of references to "rebate" in provisions of the Hydrocarbon Oil Duties Act 1979.

8. Hydrocarbon oil duties (fuel substitutes)

Resolved,

That provision may be made amending section 6A of the Hydrocarbon Oil Duties Act 1979 and section 10 of the Finance Act 1993.

9. Amusement machine licences (excepted machines)

Resolved,

That-

(1) In section 21 of the Betting and Gaming Duties Act 1981, for paragraphs (c) and (d) of subsection (3A) there shall be substituted-

"(c) a fifty-penny machine that is not a gaming machine.".

(2) For subsection (3B) of that section there shall be substituted-

"(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 price for a solo game does not 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 price to participate in such a game does not exceed 50p.".

(3) In subsection (3C) of that section, for "35p", in both places where it occurs, there shall be substituted "50p".

(4) In section 25 of that Act, in subsections (4) and (6), for "an excepted video machine falling within section 21(3A)(d) above" there shall be substituted "a fifty-penny machine within section 21(3B) above".

(5) This Resolution shall have effect in relation to the provision of an amusement machine at any time on or after 1st May 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.

10. Amusement machine licence duty (rates)

Resolved,

That-

(1) In the Table in section 23(2) of the Betting and Gaming Duties Act 1981, for columns (4) and (6) there shall be substituted-

(2) Paragraph (1) above shall apply in relation to any amusement machine licence for which an application is received by the Commissioners of Customs and Excise after 30th 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.

11. Gaming duty (sic bo and three card poker)

Resolved,

That-

(1) In section 10(2) of the Finance Act 1997-

(a) after "American roulette" there shall be inserted "sic bo";

(b) after "super pan 9" there shall be inserted "three card poker".

(2) This Resolution shall have effect in relation to games begun on or after 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.

12. Pool betting duty etc

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-

(a) the bet is made by way of pool betting, and

(b) the following conditions are satisfied.

(2) The first condition is that-

(a) the bet is made by means of a totalisator situated in the United Kingdom and that person is the operator, or

(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-

(a) made by way of sponsored pool betting,

(b) made as mentioned in section 4(3), or

(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-

(a) for or on account of or in connection with bets that are dutiable pool bets for the purposes of the calculation,

(b) in addition to the stake money, and

(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-

(a) a person makes a bet, and

(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-

(a) a person makes a bet, and

(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))-

(a) those of the person whose net pool betting receipts are being calculated, and

(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-

(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

(b) referable to matters other than-

(i) the promotion or management of the betting concerned, or

(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 be 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-

(a) becomes due at the end of the period,

(b) shall be paid by the person, and

(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-

(a) the person on whose net pool betting receipts the duty is charged ("the primary payer");

(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;

(c) a person responsible for the management of any totalisator used for the purposes of any such business;

(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-

(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

(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-

(a) in the payment of winnings, or

(b) for the benefit of a community society.

(5) In this section "community society" means-

(a) a society established and conducted for charitable purposes only, or

(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)-

(a) in paragraph (b), after "bet," there shall be inserted "or", and

(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)-

(a) in paragraph (a), the words "or coupon betting" shall be omitted,

(b) for sub-paragraphs (i) to (iv) of paragraph (a) there shall be substituted-

"(i) the bet is not made by means of a totalisator, and

(ii) the promoter is in the Isle of Man; or", and

(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 1 shall be amended as follows-

(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.";

(b) in paragraph 4(2), for "sub-paragraphs (3) and (4)" there shall be substituted "sub-paragraph (3)";

(c) paragraph 4(4) to (6) shall be omitted;

(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)";

(e) paragraph (b) of paragraph 5(2) shall be renumbered as paragraph 5(3);

(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.";

(g) in paragraph 6(2), paragraph (b) shall be omitted;

(h) paragraphs 8 and 12 shall be omitted;

(i) in paragraph 14(1), the words after paragraph (b) shall be omitted; and

(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-

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

(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-

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

(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-

(a) carry interest,

(b) affect the payability of the duty mentioned in paragraph (14), or

(c) entitle any person to any payment in respect of the credit.

(17) This paragraph applies to a bet if-

(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

(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.

13. General betting duty (spread bets)

Resolved,

That provision may be made as to the bets that are spread bets for the purposes of general betting duty.

14. Vehicle excise duty (cars registered on or after 1st March 2001)

Resolved,

That-

(1) For the Table in paragraph 1B of Schedule 1 to the Vehicle Excise and Registration Act 1994 there shall be substituted-

(2) This Resolution shall apply to any licence taken out on or after 18th April 2002 for a period beginning on or after 1st May 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.

15. Vehicle excise duty (motorcycles)

Resolved,

That-

(1) For paragraph 2(1) to (1B) of Schedule 1 to the Vehicle Excise and Registration Act 1994 there shall be substituted-

"2(1) The annual rate of vehicle excise duty applicable to a motorcycle that does not exceed 450 kilograms in weight unladen is-

(a) if the cylinder capacity of the engine does not exceed 150 cubic centimetres, £15;

(b) if the vehicle is a motorbicycle and the cylinder capacity of the engine exceeds 150 cubic centimetres but does not exceed 400 cubic centimetres, £30;

(c) if the vehicle is a motorbicycle and the cylinder capacity of the engine exceeds 400 cubic centimetres but does not exceed 600 cubic centimetres, £45;

(d) in any other case, £60.".

(2) In sections 13(3)(a), 35A(5)(b) and 36(3)(b) of that Act, and in section 13(4)(a) of that Act as substituted under paragraph 8 of Schedule 4 to that Act, for "(1)(c)" there shall be substituted "(1)(d)".

(3) Paragraph (1) of this Resolution, and the amendments in section 13 of that Act, shall apply to any licence taken out on or after 18th April 2002 for a period beginning on or after 1st May 2002.

(4) The amendments in sections 35A and 36 of that Act shall apply where the relevant period begins on or after 1st May 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.

16. Vehicle excise duty (registered vehicles etc)

Motion made and Question put,

That provision may be made for vehicle excise duty to be charged in respect of-

(a) vehicles registered under the Vehicle Excise and Registration Act 1994 that are neither used nor kept on a (motion continued)...

Debate in Parliament | Historical Hansard | Source |