Commentary

BB/16A/06 Changes to VAT law in light of the Gambling Act

Part V16 Forms and other HMRC material

BB/16A/06 Changes to VAT law in light of the Gambling Act

BB/16A/06 Changes to VAT law in light of the Gambling Act

Business Brief, Issue 16. 12 October 2006

In Business Brief 23/05 (issued on 5 December 2005), we advised that the definition of “gaming machine” for VAT liability purposes in Group 4 of Sch 9 to VATA was to be amended by Treasury Order. This was intended to ensure that all gaming machines were excluded from the exemption, and so liable to VAT. In the process of doing this, we updated some of the elements of the definition by reference to the Gambling Act 2005. Section 23 of VATA 1994, which includes a corresponding definition of a gaming machine in the provision which determines the value on which VAT is accounted for on gaming machine takings, was amended in Finance Act 2006, with retrospective effect from 6 December 2005.

Two new Treasury Orders are being laid before Parliament today that will come into effect on 1 November 2006. The new Orders continue to update VAT law in light of the Gambling Act, and will—

  1.  

    —     remove the separate definition of “gaming machine” from Group 4, replacing it by a cross-reference to the identical definition in s 23;

  2.  

    —     provide a new definition of “game of chance” in Group 4 and s 23, replacing the cross reference to the Gaming Act 1968 definition;

  3.  

    —     ensure that the definition of “game of chance” is the same across the UK

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