Finance Bill Tracking Service 2009 | Budget 2009

BN83 AMUSEMENT MACHINE LICENCE DUTY: CHANGES TO RATES AND MACHINE CATEGORIES

Who is likely to be affected?

1. Anyone who provides a gaming machine for play in the UK.

General description of the measure

2. Legislation will be introduced in Finance Bill 2009 to increase the amount of amusement machine licence duty (AMLD) for all categories of gaming machines.

3. The legislation will also make additional classes of gaming machines exempt from AMLD, increase the stake and prize levels for Category C machines and make changes to 'special licences' and 'seasonal licences'.

Operative date

4. The new duty amount for gaming machines will have effect for any licence applications received at HM Revenue & Customs (HMRC) Greenock accounting centre after 4pm on 22 April 2009.

5. The other changes will have effect on 1 June 2009.

Current law and proposed revisions

6. The table in section 23 of the Betting and Gaming Duties Act 1981 (BGDA), setting out the amounts of licence duty, will be replaced by the table below.

Months for
which licence Category Category Category Category Category Category
granted A B1 B2 B3 B4 C
1 500 255 200 200 180 80
2 985 490 385 385 350 145
3 1475 735 585 585 530 220
4 1965 985 775 775 705 290
5 2465 1230 970 970 875 365
6 2955 1475 1160 1160 1050 435
7 3445 1720 1355 1355 1225 505
8 3935 1965 1550 1550 1405 580
9 4430 2215 1745 1745 1580 655
10 4920 2465 1935 1935 1755 725
11 5410 2710 2130 2130 1930 795
12 5625 2815 2215 2215 2010 830

7. Under section 23(3) of BGDA a gaming machine with a maximum stake of 50p and maximum prize of £35 is defined as a Category C machine. From 1June 2009 these stake and prize levels will be increased to £1 and £70.

8. Under section 21 of BGDA no licence is needed for an "excepted machine". An excepted machine is a 2-penny machine, or a machine with a maximum stake of 10p and a maximum cash prize of £5, or a machine with a maximum stake of 30p and maximum prize of £8, where the cash element of the prize does not exceed £5.

9. From 1 June 2009 the definition of an excepted machine will change. The exemption for 2-penny machines and those with a 30p stake and £8 (with a maximum cash element of £5) prize remains. In addition gaming machines in the following two groups will be exempt: maximum stake of 10p and maximum prize of £15 (with a maximum cash element of £8); and those with a maximum stake of £1 and a non-cash prize with a maximum value of £50.

10. Section 22 of BGDA describes a "small-prize machine" as one with a maximum prize of £8. These machines are entitled to 'special licences' or 'seasonal licences' under section 21(4) or paragraph 4 of Schedule 4 to BGDA. The prize level for "small-prize machines" will increase to £10.

Further advice

11. Notice 454: Amusement Machine Licence Duty will be updated in due course.

12. 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 www.hmrc.gov.uk