1.Section 19 will increase the gross gaming yield bands for gaming duty in line with inflation for accounting periods starting on or after 1 April 2009, preventing fiscal drag and benefiting the industry.
2.Subsection (1) substitutes a new table for the existing table in section 11(2) of the Finance Act 1997 which has the effect of increasing the gross gaming yield bands for gaming duty and subsection (2) provides for this change to have effect for accounting periods beginning on or after 1 April 2009.
3.Gaming duty is charged on any premises in the UK where dutiable gaming takes place. Dutiable gaming includes the playing of games such as roulette, baccarat, and blackjack. The amount of duty is calculated by reference to bands of gross gaming yields (GGY) (i.e. gross profits) for that accounting period. For example, duty will be paid at a rate of 15 per cent on the first £1,929,000 of GGY, then 20 per cent for the next £1,329,500 of GGY, and so on. Gaming duty is charged on premises in respect of accounting periods of six months, normally beginning 1 April and 1 September, with interim three monthly payments.
4.The change made by this measure increases the GGY bands but makes no change to the rates. The basis for revalorisation of the bands is the Retail Price Index (RPI) for the year ended 31 December 2008. In this case the RPI was calculated at 0.95 per cent.
5.The current and revalorised bandings are:
| Tax Rate | 15 per cent of first | 20 per cent of next | 30 per cent of next | 40 per cent of next | 50 per cent of |
|---|---|---|---|---|---|
| Current | £1,911,000 | £1,317,000 | £2,307,000 | £4,869,500 | Remainder |
| Revalorised | £1,929,000 | £1,329,500 | £2,329,000 | £4,915,500 | Remainder |
6.This section is connected to section 114 which makes other changes to gaming duty and the administration of gaming duty.