Machine Games Duty: The Machine Games Duty (Amendment) (EU Exit) Regulations 2018
Published 20 August 2018
© Crown copyright 2018
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Who is likely to be affected
Anyone who applies to be registered for Machine Games Duty (MGD) on or after 16 August 2018.
General description of the measure
This measure will allow the Machine Games Duty registration process to operate efficiently once the United Kingdom has left the European Union. It makes amendments to the Machine Games Duty Regulations 2012 (S.I. 2012/2500) (the MGD Regulations).
The current registration process for MGD makes a distinction between applications received from persons usually resident or established in a member State, and applications from other persons. This measure removes the reference to “a member State”, and moves away from the current two-tiered approach to time limits, and in doing so ensures the effective operation of the MGD Regulations following the withdrawal of the UK from the EU.
In addition, this measure makes further amendments to address defects in the drafting of the MGD Regulations identified by the Select Committee on Statutory Instruments.
Policy objective
This amendment will ensure fairness and continuity of practice for taxpayers in respect of the registration process for MGD.
Background to the measure
There has been no prior announcement or consultation about this measure.
Detailed proposal
Operative date
This measure will have effect for any applications to register for MGD that are received by HMRC on or after 16 August 2018.
Current law
Current law is contained in Schedule 24 to Finance Act 2012 and the MGD Regulations.
Proposed revisions
This instrument replaces the two-tiered approach to time limits in regulation 7 of the MGD Regulations with a requirement that applications be processed as soon as is reasonably practicable and clarifies how this requirement applies to applicants who are not yet registrable. This change removes the reference to “a member State (or part of a member State)”, which will not operate appropriately following the UK’s withdrawal from the EU.
In addition, this instrument makes further minor amendments to address errors in drafting identified by the Select Committee on Statutory Instruments. The first relates to the reference to “registration number” in regulation 3 and again in paragraph (b) of Schedule 2 (information to be contained in a MGD return). The second clarifies the list of reference numbers in paragraph (q) of Schedule 1 which the Commissioners may require an applicant to include in a registration application for MGD.
Summary of impacts
Exchequer impact (£m)
| 2017 to 2018 | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 |
|---|---|---|---|---|---|
| nil | nil | nil | nil | nil | nil |
This measure is not expected to have an Exchequer impact.
Economic impact
This measure is not expected to have any economic impacts.
Impact on individuals, households and families
This measure has no impact on individuals as it only affects businesses applying to be registered for MGD. There is no impact on family formation, stability or breakdown.
Equalities impacts
It is not anticipated that there will be any impacts on those in any of the groups with protected characteristics.
Impact on business including civil society organisations
This measure will have a negligible impact on businesses who plan to register for MGD after the rule change. It is not expected that there will be any impacts on businesses who have already registered. There is no impact on civil society organisations.
Operational impact (£m) (HMRC or other)
There will be no significant operational impact to HM Revenue and Customs.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
The measure will be kept under review through communication with affected taxpayer groups.
Further advice
If you have any questions about this change, please contact Anne Merrell in the Gambling Duties policy team.
Phone: 03000 588078
Email: anne.merrell@hmrc.gsi.gov.uk
Declaration
The Exchequer Secretary to the Treasury has read this Tax Information and Impact Note and is satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impacts of the measure.