Section 124 — Finance Act 2014: Rates of machine games duty

Rates of machine games duty 124 1 Schedule 24 to FA 2012 is amended as follows.

2 For paragraph 5 substitute— Types of machine 5 1 Machines are divided into three types for the purposes of machine games duty.

2 A machine is a “type 1 machine” if it can be demonstrated that—

a the highest charge payable for playing a dutiable machine game on the machine does not exceed 20p, and b the maximum amount of cash that can be won from playing a dutiable machine game on the machine does not exceed £10.

3 A machine is a “type 2 machine” if—

a it is not a type 1 machine, and b it can be demonstrated that the highest charge payable for playing a dutiable machine game on the machine does not exceed £5.

4 Any other machine is a “type 3 machine”.

5 The Treasury may by order substitute for a sum for the time being specified in sub-paragraph (2)(a) or (b) or (3)(b) such higher sum as may be specified in the order.

3 For paragraph 6(2) substitute— 2 The amount of the duty is found by—

a applying the lower rate to the person's total net takings in the accounting period for type 1 machines, b applying the standard rate to the person's total net takings in the accounting period for type 2 machines, c applying the higher rate to the person's total net takings in the accounting period for type 3 machines, and d aggregating the results.

4 For paragraph 9 substitute— The rates 9 1 The lower rate is 5%.

2 The standard rate is 20%.

3 The higher rate is 25%.

4 If a rate changes during an accounting period—

a the old rate is to be applied to the person's total net takings in the part of the period before the change, and b the new rate is to be applied to the person's total net takings in the part of the period after the change.

5 If it is not possible to identify for the purposes of sub-paragraph (4) the part of the period to which an amount relates, it is to be apportioned on a just and reasonable basis.

5 The Machine Games Duty (Types of Machine) Order 2014 (S.I. 2014/47) is revoked.

6 The amendments and revocation made by this section have effect in relation to the playing of machine games on or after 1 March 2015.