Finance Bill Tracking Service 2007 | Budget 2007 | Budget Notes

BN59 VAT : Gambling Act 2005 consequentials

Who is likely to be affected?

1   Any business, club or other institution offering bingo or other games of chance.

General description of the measure

2   Legislation will be introduced in Finance Bill 2007 to update VAT law on participation fees for playing bingo or other games of chance in the light of the Gambling Act 2005.

3   This measure will maintain the VAT exemption for those exceptions listed in the law. Charges for player-to-player gaming will continue to be subject to VAT. The Gambling Act also allows charges, as opposed to stakes risked in the game, to be made for games of chance against the 'House'. These will also be subject to VAT.

Operative date

4   This measure will have effect on and after a date to be appointed by appointed day order when the Gambling Act provisions come fully into effect. This is expected to be on 1 September 2007.

Current law and proposed revisions

5   The current law (note 1(b) of Group 4 of Schedule 9, to the VAT Act 1994) taxes the granting of a right to take part in a game of chance in respect of which a charge may be made, by virtue of regulations under section 14 of the Gaming Act 1968 or Article 76 of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985.

6   This measure will have the effect of taxing all participation fees for bingo and gaming, subject to certain exceptions, such as small scale cash bingo, prize bingo and gaming played for fund raising purposes, subject to monetary limits prescribed by law under the Gaming Act or the 1985 Order.

7   The new legislation will update the existing legislation to take account of the Gambling Act 2005. It will maintain the existing exceptions from taxation by mentioning the relevant sections of the Gambling Act or Articles of the 1985 Order under which these games are played. It will also maintain the existing exemption for participation charges for remote gaming.

8   Notice 701/26 (Betting and Gaming) and Notice 701/27 (Bingo) will be amended in due course.

Further advice

9   If you have any questions about this change, please contact the National Advice Service on 0845 010 9000. Information about Budget measures is available on the HM Revenue & Customs website at