FINANCE BILL 2001
CLAUSE 7 : RATES OF GAMING DUTY
SUMMARY
1. This clause revises the duty bands for gaming duty for all accounting periods beginning on or after 1 April 2001.
DETAILS OF THE CLAUSE
2. Subsection (1) - substitutes for the table in section 11(2) of the Finance Act 1997 the following table:
| Part of gross gaming yield | Rate |
| The first £484,500 of gross gaming yield | 2½ per cent |
| The next £1,076,000 of gross gaming yield | 12½ per cent |
| The next £1,076,000 of gross gaming yield | 20 per cent |
| The next £1,883,500 of gross gaming yield | 30 per cent |
| The remainder | 40 per cent |
3. Subsection (2) provides that the changes will take effect for accounting periods beginning on or after 1 April 2001.
BACKGROUND
4. Gaming duty is chargeable on the gross gaming yield (largely the casino's gross profit from the gaming) in any 6 monthly accounting period. The duty is banded and is charged on parts of the gross gaming yield (GGY) at increasing rates of duty. Thus from 1 April the first £484,500 of GGY is chargeable at 2½ per cent, the next £1,076,000 is chargeable at 12½ per cent, the next £1,076,000 is chargeable at 20 per cent, the next £1,883,500 is chargeable at 30 per cent and the remainder at 40 per cent.
5. This measure fulfils the promise made by the Government, during the debate of the Committee of the Whole House in 1998, to adjust duty bands annually for the life of this Parliament.
6. The changes are revenue neutral, but casinos will pay Customs about £2 million less than they would otherwise have done, (i.e. in cash terms) in the next 12 months.