Finance Act 2012

Valuing prizes

15 (1) This paragraph applies in valuing prizes for the purposes of this Schedule (including in determining the maximum amount of cash that can be won from playing a machine game).

(2) The value of a prize includes any portion that—

(a) represents a refund of the charge payable for playing the game, or

(b) is calculated by reference to the amount of any such charge.

(3) The value of a prize in the form of something that is reasonably considered to equate to money is equal to the amount of money to which the thing is reasonably considered to equate.

(4) For a prize in the form of a currency other than sterling or in the form of something that is reasonably considered to equate to such a currency—

(a) the value of the prize is, in relation to any day, the sterling equivalent of that currency determined by reference to the London closing rate for that currency for the previous day, and

(b) for the purposes of paragraph 7(3), the day in relation to which the value is assessed is the last day of the relevant accounting period.

(5) The value of a prize other than cash depends on the person (“A”) from whom the person paying out the prize (“B”) obtained it—

(a) if A was not connected with B when B obtained the prize from A, the value is the cost to B of obtaining the prize from A,

(b) if A was connected with B when B obtained the prize from A, the value is the smaller of—

(i) the cost to B of obtaining the prize from A, and

(ii) the amount that it would have cost B, at the time B obtained the prize, to obtain it from a person not connected with B.

(6) Whether A is connected with B is to be determined in accordance with section 1122 of CTA 2010.

(7) If the value of a prize other than cash cannot reasonably be determined in accordance with sub-paragraph (5), the value of the prize is such amount as is just and reasonable.

(8) For the purposes of sub-paragraph (5), an amount paid by way of value added tax on the acquisition of a thing is to be treated as part of its cost (whether or not the amount is taken into account for the purpose of a credit or refund).

(9) The Commissioners may by regulations make further provision about the way in which prizes are to be valued for the purposes of this Schedule.

(10) This paragraph applies to a part of a prize as it applies to a whole prize, and references to a prize are to be read accordingly.