HM Customs and Excise 13
17 March 1998
______________________________________________________________
DUTY CHANGES FOR AMUSEMENT MACHINES
The Chancellor announced that the cost of a twelve month
licence for Amusement With Prizes machines and five-penny
Jackpot machines will increase from 535 pounds to 645 pounds.
The cost of a twelve month licence for other Jackpot machines
will also increase from 1375 pounds to 1815 pounds. These
changes will apply to any licence application received by
Customs on or after 18 March 1998 and will raise 20 million
pounds per year from 1999/2000.
The cost of a licence for video games, pinball tables and
Skill with Prizes (quiz) machines will not change. However,
quiz machines costing 35 pence or less per play will become
exempt from the duty from 1 April 1998.
DETAILS
1. The revised table of rates is shown below:
2. Traders who have purchased a licence for a quiz machine may surrender the licence and obtain a refund of duty under the usual surrender terms. NOTES FOR EDITORS Duty increases 1. The increase in the duty rate for the top two bands takes account of the deregulatory measures introduced by the Gaming Board to benefit the industry. Earlier deregulatory measures include: - an increase in top prize for Amusement with Prizes (AWP) machines to 8 pounds and maximum price per play to 30p; - an increase in top prize for Jackpot machines to 250 pounds; - a new type of AWP machine which can pay out up to 10 pounds in cash which has been permitted in age restricted premises (e.g. pubs, bingo halls and licensed betting offices) since 1996. 2. The cost of a 12 month licence for machines in the lowest band of duty (video machines, pinball tables and quiz machines) has not been changed. 3. The revenue effect of this measure will be an additional yield of 15 million pounds in 1998/99 on an indexed base, and 20 million pounds in 1999/2000 and 2000/01. On a non-indexed base, the additional yield will be 20 million pounds in 1998/99. The impact on RPI will be negligible. Increased exemption for quiz machines 4. Currently quiz machines are only exempt from the duty if their price per play is 5 pence or less. However many machines costing more per play have been removed from play since they became liable to duty of 250 pounds. To help the trade the price per play exemption has been increased to 35 pence to ensure these machines remain as part of our amusement machine industry. 5. The revenue effect of this measure will be a reduced yield of 5 million pounds in the years 1998/99, 1999/2000 and 2000/01 on an indexed base. The cost on a non-indexed base in 1998/99 will also be 5 million pounds. The impact on RPI will be negligible. 6. Details for traders are available on Budget Notice BN 31/98. Press enquiries only to HM Customs and Excise, Public Relations Office, New King's Beam House, 22 Upper Ground, London, SE1 9PJ. Telephone: 0171 865 5468/5471 Others should contact their local Excise and Inland Customs Business Advice Centre, listed under Customs and Excise in the telephone book. Customs and Excise Internet address: http://www.open.gov.uk/customs/c&ehome.htm This news release can also be found at: http://www.hm-treasury.gov.uk. Other Treasury material can also be found at this address.