Section 5AB — Finance Act 2003: Betting exchanges

Betting exchanges 5AB 1 This section applies where—

a one person makes a bet with another person using facilities provided by a third person in the course of a business, and b that business is one that does not involve the provision of premises for use by persons making or taking bets.

2 General betting duty shall be charged on the amounts (“ commission charges ”) that the parties to the bet are charged, whether by deduction from winnings or otherwise, for using those facilities.

3 No deductions shall be allowed from commission charges.

4 The amount of duty charged under this section in respect of bets determined in an accounting period shall be 15 per cent of the commission charges relating to those bets.

5 For the purposes of this section, and section 5B(4) so far as relating to this section, a person who arranges for facilities relating to a bet to be provided by another person shall be treated as providing them himself (and the other person shall not).