Finance Bill 2002: EXPLANATORY NOTE
CLAUSE 10: RATES OF GAMING DUTY
SUMMARY
1. Clause 10 revalorises the duty bands for gaming duty for all accounting periods starting on or after 1 April 2002.
DETAILS OF THE CLAUSE
2. Subsection (1) substitutes a new table for the existing table in section 11(2) of the Finance Act 1997 which has the effect of increasing the duty bands for gaming duty. The new table is:
| part of gross gaming yield | Rate |
| The first £488,000 of gross gaming yield The next £1,083,500 of gross gaming yield The next £1,083,500 of gross gaming yield The next £1,897,000 of gross gaming yield The remainder |
2 ½ per cent 12 ½ per cent 20 per cent 30 per cent 40 per cent |
3. Subsection (2) provides for this change to have effect in respect of accounting periods beginning on or after 1 April 2002.
BACKGROUND
4. Gaming Duty is charged on any premises in the UK where dutiable gaming take place. Dutiable gaming includes the playing of roulette, baccarat, blackjack, and other games commonly played in UK casinos.
5. Gaming duty is charged on premises in respect of accounting periods of 6 months. The amount of gaming duty is calculated by applying increasing rates to bands of gross gaming yield (ggy) (i.e. gross profits) for that accounting period. For example, duty is paid at a rate of 2 ½ per cent on first £488,000 of ggy, then 12 ½ per cent for the next £1,083,500 of ggy, and so on.
6. The change made by this measure increases the duty bands but makes no changes to the rates. The duty bands have been increased by the rate of inflation as at 31 December 2001, in accordance with a practice agreed with the casino industry in the last Parliament.
7. The changes are revenue neutral, but casinos will pay approximately £400,000 less (in cash terms) than they would otherwise have done in the next 12 months.