Search Legislation

Finance Act 2002

What Version

 Help about what version

Advanced Features

 Help about advanced features

Changes to legislation:

There are outstanding changes not yet made by the legislation.gov.uk editorial team to Finance Act 2002. Any changes that have already been made by the team appear in the content and are referenced with annotations. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.

Changes and effects yet to be applied to :

 Help about changes and effects
Close

Changes and effects

This section lists the changes and effects yet to be applied to the specific provision you are viewing.

Changes and effects yet to be applied to the whole Act associated Parts and Chapters:

 Help about changes and effects
Close

Changes and effects

This section lists the changes and effects yet to be applied to the whole Act, associated Parts and Chapters where applicable. This includes any insertions of whole new Parts, Chapters or provisions yet to be inserted into this Act. These effects are included in this view as they may be (but won’t necessarily be) relevant to the specific provision that you are viewing.

Commencement Orders yet to be applied to the Finance Act 2002

 Help about changes and effects
Close

Commencement Orders

This section lists the commencement orders yet to be applied to the whole Act. These effects are included in this view as they may be (but won’t necessarily be) relevant to the specific provision that you are viewing. Where applicable the commencement orders are listed under two headings, firstly those that bring some part of the Act you are viewing into force and secondly, those that bring into force legislation that affects some part of the legislation you are viewing. If you are viewing a prospective version or there is a prospective version available there may be commencement orders listed here that are relevant to the provision you are viewing.

Commencement Orders bringing legislation that affects this Act into force:

Section 12

SCHEDULE 4E+W+S+N.I.Pool betting duty etc

Part 1E+W+S+N.I.Amendments of the Betting and Gaming Duties Act 1981

1The Betting and Gaming Duties Act 1981 (c. 63) is amended as follows.E+W+S+N.I.

2For sections 6 to 8 (pool betting duty: charge, rate and payment) substitute—E+W+S+N.I.

E+W+S+N.I.

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—

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 but have effect subject to any regulations under subsection (6).

(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.

(6)The Commissioners may by regulations make provision as to when any sum due to a person in respect of a bet is to be treated as falling due for the purpose of calculating S in a calculation under section 7A.

(7)Provision made by regulations under subsection (6) may not provide for a sum due to a person in respect of a bet to be treated as falling due—

(a)earlier than when the bet is made, or

(b)later than when the bet is determined.

(8)Regulations made under subsection (6) may—

(a)make provision that applies generally or only in relation to a specified description of bet;

(b)make different provision for different purposes;

(c)make provision relating to bets made before the regulations are made (including bets made before the passing of the Finance Act 2002);

(d)make transitional provision.

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.

(4)The Commissioners may by regulations make provision as to the accounting period to which expenses and profits falling within subsection (2) are to be treated as attributable for the purpose of calculating E in a calculation under section 7A.

(5)Regulations made under subsection (4) may—

(a)make provision that applies generally or only in relation to a specified description of bet;

(b)make different provision for different purposes;

(c)make provision applying in respect of expenses incurred, and profits accruing, before the regulations are made (including any incurred or accruing before the passing of the Finance Act 2002);

(d)make transitional provision.

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.

(6)The Commissioners may by regulations make provision as to when amounts paid by way of winnings are to be treated as being paid for the purposes of calculating W in a calculation under section 7A.

(7)Regulations made under subsection (6) may—

(a)make provision that applies generally or only in relation to a specified description of bet;

(b)make different provision for different purposes;

(c)make provision applying in respect of amounts paid before the regulations are made (including amounts paid before the passing of the Finance Act 2002);

(d)make transitional provision.

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 regulations under subsection (3) and 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.

(3)The Commissioners may by regulations—

(a)make provision as to when pool betting duty is to be paid (including provision repealing paragraph 3 of Schedule 1 to this Act and the reference to that paragraph in subsection (1)(c));

(b)make provision as to how pool betting duty is to be paid.

(4)Regulations made under subsection (3) may—

(a)make provision that applies generally or only in relation to a specified person or class of person;

(b)make different provision for different purposes;

(c)make transitional provision.

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

(1)For the purposes of sections 6 to 8—

(a)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, but

(b)the Commissioners may by regulations make provision for some other specified period to be an accounting period.

(2)Regulations made under subsection (1)(b) may—

(a)make provision that applies generally or only in relation to a specified person or class of person;

(b)make different provision for different purposes;

(c)make transitional provision.

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)..

Annotations: Help about Annotation
Close

Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Commencement Information

I1Sch. 4 para. 2 wholly in force; Sch. 4 para. 2 in force at 31.3.2002 for specified purposes, otherwise in force at 24.7.2002, see. s. 12(5)(7)(a)(8)

3In section 2(2) (bets to which section 2(1) does not apply)—E+W+S+N.I.

(a)in paragraph (b), after “bet," insert “ or ”, and

(b)omit paragraph (d) and the word “or" preceding it.

4In section 4(6) (bets to which subsections (1) to (3) do not apply), for the words from “do not apply" to the end substitute “ do not apply to on-course bets. ”.E+W+S+N.I.

5In section 9(2) (bets to which section applies), omit “or coupon betting" (in both places).E+W+S+N.I.

6In section 9(3) (bets to which section does not apply)—E+W+S+N.I.

(a)in paragraph (a), omit “or coupon betting",

(b)for sub-paragraphs (i) to (iv) of paragraph (a) substitute—

(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), omit “or coupon betting".

Annotations: Help about Annotation
Close

Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Commencement Information

I2Sch. 4 para. 6 wholly in force; Sch. 4 para. 6(b) in force at 31.3.2002; Sch. 4 para. 6(a)(c) in force at 24.4.2002, see s. 12(5)(6)

7For section 9(6) substitute—E+W+S+N.I.

(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..

8Omit section 11 (definition of coupon betting).E+W+S+N.I.

9In section 12(3) (interpretation of sections 1 to 10 etc), omit “(except in sections 6, 7, 8, 9(2)(a) and 9(5) in their application to coupon betting)".E+W+S+N.I.

10(1)Schedule 1 (administration etc of betting duties) is amended as follows.E+W+S+N.I.

(2)In paragraph 1, in the definition of “pool betting business", at the end insert “ 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. ”.

(3)After paragraph 2 insert—

2A(1)Pool betting duty shall be under the care and management of the Commissioners.

(2)Without prejudice to any other provision of this Schedule, the Commissioners may make regulations providing for any matter for which provision appears to them to be necessary for the administration or enforcement of pool betting duty or for the protection of the revenue from pool betting duty.

(3)Regulations under sub-paragraph (2) above may in particular—

(a)provide for payments on account of pool betting duty which may become chargeable to be made in advance;

(b)provide for the giving of security by means of a deposit or otherwise for duty due or to become due..

(4)In paragraph 3, omit “shall be under the care and management of the Commissioners, and".

(5)In paragraph 4(2), for “sub-paragraphs (3) and (4)" substitute “ sub-paragraph (3) ”.

(6)Omit paragraph 4(4) to (6).

(7)In paragraph 5(1), for “made entry or given notice in accordance with paragraph 4(2) or (4)" substitute “ made entry in accordance with paragraph 4(2) ”.

(8)Renumber paragraph (b) of paragraph 5(2) as paragraph 5(3).

(9)In what remains of paragraph 5(2) after that renumbering, for the words from “paragraph 12(3) below, except that" to the end substitute “ sub-paragraph (3) below. ”.

(10)In paragraph 6(2), omit paragraph (b).

(11)Omit paragraphs 8 and 12.

(12)In paragraph 13(1)(b), after “any of paragraphs 2," insert “ 2A, ”.

(13)In paragraph 14(1), omit the words after paragraph (b).

(14)In paragraph 15(4), for “the said Schedule 1" substitute “ Schedule 1 to the Betting, Gaming and Lotteries Act 1963 ”.

Annotations: Help about Annotation
Close

Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Commencement Information

I3Sch. 6 para. 10 wholly in force; Sch. 6 para. 10(1)(2)(5)-(11)(13)(14) in force at 24.4.2002; Sch. 6 para. 10(3)(4)(12) in force at 24.7.2002, see s. 12(6)(7)(b)

Part 2E+W+S+N.I.Minor amendments and transitional provisions

Amendment in the Excise Duties (Surcharges or Rebates) Act 1979E+W+S+N.I.

11In section 1(3) of the Excise Duties (Surcharges or Rebates) Act 1979 (c. 8) (liability to duty other than pool betting duty adjusted if order under section in force when duty becomes due), omit the words from “, except that if the duty is pool betting duty" to the end.

Amendments in Schedule 5 to the Finance Act 1994E+W+S+N.I.

12(1)Paragraph 6 of Schedule 5 to the Finance Act 1994 (c. 9) (decisions under the Betting and Gaming Duties Act 1981 that are subject to review and appeal) is amended as follows.

(2)In sub-paragraph (2)(a) (decisions in connection with requiring security for duty)—

(a)after “regulations under paragraph 2" insert “ or 2A ”, and

(b)after “in relation to general betting duty" insert “ or pool betting duty ”.

(3)After sub-paragraph (2) insert—

(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)..

Annotations: Help about Annotation
Close

Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Commencement Information

I4Sch. 4 para. 12 wholly in force; Sch. 4 para. 12(1)(3) in force at 24.4.2002; Sch. 4 para. 12(2) in force at 24.7.2002, see. s. 12(6)(7)(b)

Duty charged before 31st March 2002E+W+S+N.I.

13(1)If—

(a)stake money is paid before 31st March 2002 in respect of a bet to which this paragraph 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.

(2)If—

(a)stake money is paid before 31st March 2002 in respect of such a bet, 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.

(3)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 for the purposes of pool betting duty that begin on or after 31st March 2002 (taking earlier such periods before later ones).

(4)Such a credit does not—

(a)carry interest,

(b)affect the payability of the duty mentioned in sub-paragraph (2), or

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

(5)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 Schedule, 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.

Notifications under paragraph 4(4) of Schedule 1 to that Act of premises used in connection with coupon bettingE+W+S+N.I.

14Any notification under paragraph 4(4) of Schedule 1 to the Betting and Gaming Duties Act 1981 (c. 63) (duty to notify premises used for purposes of pool betting business in connection only with coupon betting) 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 (duty to notify premises used for purposes of betting business in connection only with general betting).

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made):The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

See additional information alongside the content

Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enactedversion that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources