PART 3General betting duty, pool betting duty and remote gaming duty

CHAPTER 1General betting duty

Pool betting on horse and dog races

134Chapter 1 pool bets

1

A bet is a “Chapter 1 pool bet” for the purposes of this Part if—

a

it relates only to horse racing or dog racing,

b

it is not an on-course bet,

c

it is made by way of pool betting, and

d

one or more of conditions A to C is met in relation to it.

2

Condition A is that the person who makes the bet (whether as principal or agent) does so while present at a place in the United Kingdom where betting facilities are provided in the course of a business and the bet is made using those facilities.

3

Condition B is that—

a

the person who makes the bet as principal is a UK person, and

b

the bet is not an excluded bet.

4

Condition C is that—

a

the person who makes the bet as principal is a body corporate not legally constituted in the United Kingdom,

b

the bookmaker with whom the bet is made knows or has reasonable cause to believe that at least one potential beneficiary of any winnings from the bet is a UK person, and

c

the bet is not an excluded bet.

5

A Chapter 1 pool bet is a “pooled stake Chapter 1 pool bet” for the purposes of this Part if all or any part of the stake money on the bet is assigned by or on behalf of the bookmaker with whom it is made to a fund (referred to in this Part as a “Chapter 1 stake fund”) from which winnings are to be paid in respect of pool betting.

6

A Chapter 1 pool bet is an “ordinary Chapter 1 pool bet” for the purposes of this Part if it is not a pooled stake Chapter 1 pool bet.

135General betting duty charge on Chapter 1 pool bets

1

General betting duty is charged on a Chapter 1 pool bet made with a bookmaker.

2

It is charged at the rate of 15% of the bookmaker's profits on Chapter 1 pool bets for an accounting period.

3

The bookmaker's profits on Chapter 1 pool bets for an accounting period are the aggregate of—

a

the amount of the bookmaker's profits for the period in respect of pooled stake Chapter 1 pool bets (calculated in accordance with section 136), and

b

the amount of the bookmaker's profits for the period in respect of ordinary Chapter 1 pool bets (calculated in accordance with section 137), and

c

the amount of the bookmaker's profits for the period in respect of retained winnings on Chapter 1 pool bets (calculated in accordance with section 138).

4

Where the calculation for an accounting period under subsection (3) produces a negative amount—

a

the bookmaker's profits on Chapter 1 pool bets for the accounting period are treated as nil, and

b

the amount produced by the calculation may be carried forward in reduction of the bookmaker's profits on Chapter 1 pool bets for one or more later accounting periods.

136Profits on pooled stake Chapter 1 pool bets

1

Take the following steps to calculate the amount of a bookmaker's profits for an accounting period in respect of pooled stake Chapter 1 pool bets.

  • Step 1 Take the aggregate of the relevant stake money falling due to the bookmaker in the accounting period and deduct the aggregate of any of that stake money that is assigned by or on behalf of the bookmaker to Chapter 1 stake funds during the period.

  • Step 2 If in the accounting period any amount contained in a Chapter 1 stake fund to which relevant stake money has been assigned by or on behalf of the bookmaker is used otherwise than to provide winnings to persons who made bets by way of pool betting, multiply each amount so used in the accounting period by the relevant proportion that applies in relation to it.

  • Step 3 Add the aggregate of the amounts calculated under Step 2 to the amount calculated under Step 1.

  • Step 4 If in the accounting period any top-up payment is assigned to a Chapter 1 stake fund by the bookmaker, multiply the amount of each top-up payment so assigned in the accounting period by the appropriate proportion that applies in relation to it.

  • Step 5 Subtract the aggregate of the amounts calculated under Step 4 from the amount calculated under Step 3.

2

For the purposes of Step 2 the relevant proportion, in relation to any amount which is used otherwise than to provide winnings, is—

a

if the amount relates to bets on a specific event, the proportion of that amount that consists of relevant stake money that fell due to the bookmaker in respect of the bets,

b

if the amount does not relate to bets on a specific event but relates to amounts assigned to the fund during a specific period, the proportion of that amount that consists of relevant stake money assigned to the fund by or on behalf of the bookmaker during that period, and

c

in any other case, the proportion of the total amount contained in the fund immediately before the amount is so used which consists of relevant stake money assigned to the fund by or on behalf of the bookmaker.

3

For the purposes of Step 4—

a

a top-up payment is assigned to a Chapter 1 stake fund if the bookmaker assigns an amount (other than stake money on a bet) to the fund to satisfy a guarantee given by the bookmaker that a specified minimum amount of winnings will be available in respect of bets made with the bookmaker, and

b

the appropriate proportion, in relation to such a payment, is the proportion determined in accordance with a notice published by the Commissioners.

4

A notice under subsection (3)(b) may provide for top-up payments to be ignored for the purposes of Step 4 in a specified case or class of cases.

5

In this section “relevant stake money” means stake money in respect of a pooled stake Chapter 1 pool bet.

137Profits on ordinary Chapter 1 pool bets

To calculate the amount of a bookmaker's profits for an accounting period in respect of ordinary Chapter 1 pool bets—

a

take the aggregate of the stake money falling due to the bookmaker in the accounting period in respect of such bets, and

b

subtract the aggregate of the expenditure by or on behalf of the bookmaker for the period on winnings in respect of such bets.

138Profits on retained winnings on Chapter 1 pool bets

1

The amount of a bookmaker's profits for an accounting period in respect of retained winnings on Chapter 1 pool bets is the aggregate of the amounts which cease to be qualifying amounts in the accounting period.

2

An amount is a qualifying amount for the purposes of this section if, as a result of a person (“P”) being notified as mentioned in section 140(2)(b), it has been taken into account in calculating the bookmaker's profits for any accounting period under section 136 or 137.

3

An amount ceases to be a qualifying amount for the purposes of this section if, otherwise than by virtue of being withdrawn from the account by P as mentioned in section 140(2)(b), P ceases to be entitled to withdraw it.

4

The Commissioners may by notice published by them direct that subsection (3) is not to apply in a specified case or class of cases.