H.M. TREASURY Notes on Clauses

CLAUSE 7: RATES OF GAMING DUTY

INTRODUCTION

1. This clause revises the duty bands for gaming duty for all accounting periods beginning on or after 1 April 1999.

DETAILS OF THE CLAUSE

2. Subsection (1) - substitutes for the table in section 11(2) of the Finance Act 1997 the following table:

Part of gross gaming yield	Rate
The first £462,500 of gross gaming yield	2½ per cent
The next £1,027,500 of gross gaming yield	12½ per cent
The next £1,027,500 of gross gaming yield	20 per cent
The next £1,798,500 of gross gaming yield	30 per cent
The remainder	40 per cent

3. Subsection (2) provides that the changes will take effect for accounting periods beginning on or after 1 April 1999.

BACKGROUND

4. Gaming duty is chargeable on the gross gaming yield (largely the casino's gross profit from the gaming) in any 6 monthly accounting period. The duty is banded and is charged on parts of the gross gaming yield (ggy) at increasing rates of duty. Thus from 1 April the first £462,500 of ggy is chargeable at 2½ per cent, the next £1,027,500 is chargeable at 12½ per cent, the next £1,027,500 is chargeable at 20 per cent, the next £1,798,500 is chargeable at 30 per cent and the remainder at 40 per cent.

5. This measure fulfils the promise made by Dawn Primarolo, during the debate of the Committee of the Whole House last year, to adjust duty bands annually for the life of this Parliament.

6. The changes will raise no money on an index base, but casinos will pay Customs about £1 million less than they would otherwise have done, (i.e. in cash terms) in the next 12 months.