The Machine Games Duty Regulations 2012

EXPLANATORY NOTE

(This note is not part of the Regulations)

Schedule 24 to the Finance Act 2012 (“the Schedule”) introduces a new duty of excise, known as machine games duty (“MGD”), to be charged on the playing of dutiable machine games in the United Kingdom.

Part 1 (regulations 1 to 5) contains the provisions on citation, commencement and interpretation. It also contains provisions about the delivery of information and agency.

Part 2 (regulations 6 to 11) contains the provisions on registration and in particular, how to apply for registration and de-registration. It also contains provisions to cover inaccuracies in the register and for updating information in the register. Regulation 10 covers the procedure for compulsory registration (provided for by paragraphs 23 and 24 of the Schedule) and regulation 11 sets out the provisions on security and the appointment of a United Kingdom representative.

Part 3 (regulations 12 to 15) contains the provisions on returns and payment of MGD, and correction of errors. There are separate provisions to cover payment by a registered person and by someone who is not registered for MGD.

Part 4 (regulations 16 and 17) contains provisions on electronic communication sent to or by the Commissioners in respect of MGD.

Part 5 (regulations 18 to 24) contains the provisions on group registration and payment of MGD, in particular eligibility for and the effect of group membership and the role of the representative member of the group. It also contains provisions on joining and leaving groups and applications by group members other than the representative member in respect of MGD.

Schedule 1 contains the information which the Commissioners may require an applicant to include in an application for registration for MGD.

Schedule 2 contains the information which the Commissioners may require an RP to include in an MGD return.

A Tax Information and Impact Note covering this instrument and the Schedule was published on 21st March 2012 and is available on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm. It remains an accurate summary of the impacts that apply to this instrument.