Notice

General Betting Duty — (Excise Notice 451a)

Updated 24 April 2024

Some paragraphs in this notice have the force of law under:

• the Finance Act 2014 (the Act)
• the General Betting, Pool Betting and Remote Gaming duties (Registration, Records and Agents) Regulations 2014 (Statutory Instrument (SI) 2014/2257) — (Registration Regulations 2014)
• the General Betting, Pool Betting and Remote Gaming Duties (Returns, Payments, Information and Records) Regulations 2014 (SI 2014/2912) — (Returns Regulations 2014)
• the Revenue Traders (Accounts and Records) Regulations 1992 (SI 1992/3150)

1. Introduction

General Betting Duty (GBD) is charged at the rate of 15% of a bookmaker’s profits from:

• general bets, or pool bets on horse racing or dog racing, made with a bookmaker by a customer in a betting shop
• general bets, or pool bets on horse racing or dog racing, made with a bookmaker by a UK person, not in a UK betting shop

GBD is charged at the rate of 10% of a bookmaker’s profits from:

• non-financial spread bets, such as sports spread bets, made with a bookmaker who is in the UK

and 3% of a bookmaker’s profits:

• from financial spread bets made with a bookmaker who is in the UK

GBD is charged at 15% on commission charges:

• charged by a betting exchange to any party to the bet who is a UK person regardless of where the betting exchange is located

From December 2014, GBD, (apart from spread betting), Pool Betting Duty (PBD) and Remote Gaming Duty (RGD) apply on a ‘place of consumption’ basis. Remote gambling operators pay UK gambling duty on their gross gambling profits from UK customers. It does not matter where in the world the operators are located.

This notice is only for GBD. Read Notice 147a: Pool Betting Duty for PBD and Notice 455a: Remote Gaming Duty for RGD.

2. Definitions

2.1 Bookmaker

Section 189 of the Act defines a bookmaker as someone who:

• receives or negotiates bets or conducts pool betting operations, either as principal or agent
• holds themselves out, or permits themselves to be held out, as a person who receives or negotiates bets or conducts pool betting

2.2 UK Person

For bookmakers not located in the UK, GBD will be charged on any profits they make from bets made by a UK person.

A UK person is either:

• an individual who usually lives in the UK
• a body corporate which is legally constituted in the UK

HMRC can make statutory provision in a notice about how to determine if a customer is a UK person.

The following has the force of law made under section 186 of the Act

HMRC specifies that, where it’s relevant for the purposes of establishing liability for GBD whether a customer is or is not a UK person the following steps must be taken.

Step 1

1.1. Bookmakers must keep appropriate records to enable them to verify whether customers are UK persons (that is, whether they usually live in the UK) or whether they usually live outside the UK. Bookmakers have a responsibility to keep their records on customer location up to date. These records must be capable of audit by HMRC.

1.2. All bookmakers should initially require their customers to state the address at which they usually live at the time the customer registers to bet with the bookmaker. If no address is given the customer will be regarded as being a UK person.

1.3. When a UK address is given, the customer will be regarded as being a UK person.

Step 2

2.1. If a customer gives a non-UK address, bookmakers must verify the customer’s declared location by reference to other information in their systems. It is not acceptable for bookmakers to simply accept assertions from customers about where they live.

2.2. In cases of a verification system returning a conflicting result, with some information indicating the customer is a UK person and other information indicating the contrary, then the following tests should be applied.

2.3. Bookmakers should consider the customer’s statement that they do not live in the UK against all other information they hold about the customer (for whatever reason it has been collected). If 2 current pieces of information indicate a UK address the customer will be deemed to be a UK person regardless of their statement that they live elsewhere. Typical information items will be the customer’s:

• address on a bank statement
• address associated with a credit card
• address on their driving licence
• contact phone number and the country code attached to it

2.4. If any 2 or more of these information items are known to the bookmaker and they return a result indicating residence in the UK, then irrespective of whether the customer has provided an address outside the UK, they must treat that customer as a UK person for the purposes of gambling duties taxation. This is known as the ‘Two UK Indicators Rule’.

HMRC does not prescribe what the information described at step 2.1 should be or how it should be collected. To be robust, a system must have built-in verification. HMRC does not prescribe what that verification must be.

Read section 9 to find out about the statutory provisions for record keeping.

3. GBD calculations

3.1 General bets

A bet is a general bet if it’s not:

• an on-course bet — read paragraph 3.8
• a spread bet — read paragraph 3.3
• made by way of pool betting

For general bets, your bookmaker’s profit for each accounting period is the difference between the total amounts of stake money due to you, and the total amount of winnings actually paid out to your customers, for all bets made with or through you, in that accounting period. Read section 5 for more information.

You should treat stake money as falling due when the bet is made, regardless of when it is paid (read paragraph 3.7). Only winnings in the form of money count as winnings for a general bet.

3.2 GBD — pool betting on horse racing or dog racing

In pool betting the bookmaker is not a party to the gamble. Instead of making a bet against the bookmaker, the customer competes against other customers for a share of a prize pool. When making the bet, the customer does not know how much they’ll win. The amount of winnings is determined by:

• the total value of the stakes in the pool
• the number of winners

The ‘stakes’ are made up of the total amount due from customers for the bets they make. This includes any additional entry fees or participation charges.

The bookmaker places the stakes (or a part of stakes) received from all the customers, into a ‘pool’ from which winnings are paid out. It is standard practice for you as bookmaker to retain a portion of these stakes either before or after putting them into the pool.

Your bookmaker’s dutiable profit is the amount of UK shares which you keep, rather than make available as winnings in the pool. This retained sum is also called your ‘commission’ and is the taxable amount.

If you take a commission before the stakes go in the pool, and another afterwards, you need to add these commissions together.

3.2.1 Amounts taken from stakes

If you take your commission from the stakes before any money goes into the pool, you should be able to easily identify all UK stakes. Duty is chargeable on commission taken from UK customers.

3.2.2 Amounts taken out of a pool

If you take your commission after the stakes go into the pool, it may be difficult to identify which stakes came from UK customers.

For pool betting on horse racing or dog racing, where the pool is only made up of contributions from UK customers, duty is due on all amounts taken out of the pool. An exception applies to amounts taken out to pay winnings, as these are deductions.

If the pool contains contributions from both UK and non-UK customers, only use the UK portion of the deductions to work out the duty you owe.

Apportionment

To work out how much of your deductions are dutiable, you need to apportion your ‘UK share’. To do this, you must look at the amount of stakes due from UK customers as a proportion of the total amount of stakes due.

For example, a pool is made up of contributions from both UK and non-UK customers. The total pool is £1,000 and £250 of the stakes are from UK customers. Therefore, 25% of any deductions made from the pool will be dutiable. This apportionment is applied as follows:

1. Where the deductions are taken from a pool specific to an event or events, such as a single horse race, the amount liable to duty is calculated by multiplying the total deductions removed from the pool by the UK proportion of total stakes (UK and non-UK) paid into that pool.
2. Where the deductions are taken from a pool specific to a period of time, for example all horse races in a single day, the amount liable to duty is calculated by multiplying the total deductions removed from the pool by the UK proportion of total stakes (UK and non-UK) paid to the pool over that period of time.
3. Where the deductions are taken from a pool that relates to something other than a specific event or events or period of time, such as an open-ended rollover, the amount liable to duty is calculated by multiplying the total deductions removed from the pool by the UK stakes proportion at the point in time the deductions are taken.

3.2.3 Top up amounts to a fund or pool containing both UK and non-UK players

Sometimes you may need to top up the pool. For example, if you guarantee a jackpot of a particular sum but have not received enough stakes to meet that sum, you will need to ‘top up’ the pool with your own money to make up the difference and meet the expected jackpot sum. If the pool contains contributions from both UK and non-UK customers, only include the appropriate UK portion of the ‘top up’ sum in your duty calculation.

The following has the force of law made under section 136 (3) (b) of the Act

In order to determine the appropriate proportion, you must use the same calculation that you use to apportion the amounts taken out.

Calculating your profit

To calculate your profit from pool betting on horse racing or dog racing, you must consider 5 steps, set out in law. You may not need to consider all 5 steps, depending on the complexity of your arrangements.

The 5-step approach

Step 1

Take the total amount of stakes paid by UK customers. Deduct the amount of these stakes that you assign to the pool. Include the remainder in your duty calculation.

For example, if £1,000 paid in UK stakes and £700 is assigned to the pool, the remainder of £300 is the dutiable sum.

Step 2

If you use any amount in the pool for purposes other than to pay winnings, calculate the UK portion of this amount.

First, divide the amount of UK contributions to the pool by the total amount in the pool. This will give you the UK fraction of the pool.

Multiply the UK fraction of the pool by the amount you’ve taken from the pool. Include this portion in your duty calculation.

For example, of a total pool of £2,100, £700 has come from UK customers. You take £600 from the pool. The UK fraction of the pool is one third so multiply £600 by a third, which is £200. Add this £200 to your duty calculation.

Step 3

Add together the amounts from steps 1 and 2.
£300 + £200 = £500

Step 4

If you add any money to the pool to top up the winnings, calculate the UK portion of this top up sum by multiplying it by the same proportion as done at step 2.

For example, you add £90. The UK fraction of your pool is one third. Multiplying £90 by one third gives you £30.

Step 5

Subtract any amount in step 4 from the total calculated at step 3.

You now have the amount on which duty is chargeable.

3.3 Spread betting

Section 128 of Finance Act 2014 Part 3 states:

(1) A bet is a spread bet for the purposes of this part if it constitutes a contract the making or accepting of which is a regulated activity within the meaning of section 22 of the Financial Services and Markets Act 2000.
(2) In this part — ‘financial spread bet’ means a spread bet the subject of which is a financial matter, and ‘non-financial spread bet’ means any other spread bet.
(3) The Commissioners may by regulations provide that a specified matter:
(a) is to be treated as a financial matter for the purposes of subsection (2)
(b) is not to be treated as a financial matter for those purposes.

Typically, a bookmaker will quote a ‘spread’ covering a range from an index. The bookmaker believes the closing position of the index will fall within this spread and customers are invited to bet whether the index will close at a higher, or lower, position than the quoted spread.

Spread bets can be based on financial indexes, such as fluctuations in the value of stock markets, or non-financial indexes such as the number of runs scored in a cricket match or goals scored in a football match.

Customers can choose to bet that the fluctuation of an index will be above the quoted spread (a ‘buy’ bet) or that it will be below the quoted spread (a ‘sell’ bet).

A customer’s winnings or losses will depend on how right or wrong they’re in predicting the fluctuation of the index.

The amount of duty you must pay, as a spread bet bookmaker, will depend on your bookmaker’s profits for each accounting period for each class of spread bet.

Your bookmaker’s profits for each class of bets will be the total amount that falls due to you in an accounting period for bets made, less the amount you actually paid out as winnings for the same class of bets in the same accounting period. This basis of calculating bookmaker’s profits differs from the method used for fixed odds and totalisator betting because spread bet bookmakers and their customers do not always know how much is being risked when a bet is made.

You can include as winnings, amounts credited to your customers’ accounts in respect of winning bets when they have been notified of the payment and they’re entitled to withdraw the amounts on demand.

All charges or fees that customers are required to pay for their betting must be included as ‘stakes’.

If you accept financial spread bets and other spread bets, you will need to carry out separate bookmaker’s profits’ calculations for these 2 classes of bets. Different duty rates apply to each class (3% on financial spread bets and 10% on non-financial spread bets) and you must enter them separately onto your duty return.

3.3.1 Binary options

A binary option is a type of betting product that is commonly offered by spread bet bookmakers. Up until January 2018 this product did not fall within the definition of a ‘regulated activity’ and was not regarded as spread betting. Instead binary options were effectively a form of fixed odds betting and liable to GBD at 15% as general bets.

Recent changes to the Financial Services and Markets Act mean that from 4 January 2018 dealing in binary options is a regulated activity. For GBD this means that from 4 January 2018 binary options will no longer be taxed as general bets. Instead they’ll be taxed as spread bets.

Any binary options taken before that date will be charged GBD at 15% as general bets.

3.4 Bookmakers and betting exchanges

Bookmakers’ profits are not relevant to these traders. Betting exchanges calculate their duty liability on the charges they make, such as their commission, to their customers.

3.4.1 Definition of a betting exchange

A betting exchange is defined in law as a business that:

• provides facilities to allow other parties to bet with each other
• does not provide premises that can be used by anyone making, taking or laying bets

The betting exchange itself does not make, take or lay bets.

GBD is charged on any amount that a betting exchange charges to any UK person who uses its facilities to make bets. For example, GBD would apply to:

• commission charges
• administration fees
• deductions from winnings

Betting exchanges are liable to GBD at 15% on the charges they make, (even if subsequently unpaid) in each accounting period in relation to the bets that are determined in that period.

3.4.2 How a bookmaker who takes a bet through a betting exchange accounts for duty

GBD is charged on bets (other than on-course bets) made by:

• a UK person with a bookmaker located within or outside the UK
• any person, UK or non-UK, on betting premises in the UK

If you’re a bookmaker, it makes no difference whether you take bets in a shop, over the phone, online, or through a betting exchange.

Bets that you take through a betting exchange are no different from other bets that you take. You must still include these bets in your duty calculation.

As an on-course bookmaker, if you lay bets through a betting exchange you must register for GBD as an off-course bookmaker, not as a betting exchange. Only betting exchanges themselves must register as such for GBD.

3.4.3 Provision of information

Betting exchanges who allow UK persons to use their exchange are required to provide bookmakers who take bets on the exchange with a statement of the bookmaker’s profits from UK persons.(Returns Regulations 2014 regulation 5).

The statement need only show a single total profits figure for an accounting period. Betting exchanges are required to publish on the internet the process by which bookmakers may request a statement. The process must be agreed with HMRC.

Betting exchanges should contact HMRC excise and gambling duty enquiries about agreement of this process.

Betting exchanges can take up to 14 days to provide the statement. The 14 days is calculated as being the later from either the date they receive the request or end date of the accounting period for which the bookmaker requests the information.

3.5 Winnings

When calculating your bookmakers’ profits for bets made with you, only payments of money can be deducted as winnings. The amount of winnings can include:

• stakes that you’ve returned to customers
• any winnings which you’ve credited to your customers’ accounts, rather than paid over in actual cash, providing you’ve let them know that the winnings are there in their account and that they can withdraw them at anytime

If you have not told the customer that you’ve credited their account then you cannot include these sums in your GBD calculation. If your customer is not free to withdraw their winnings then you cannot include these sums.

Make sure you only include winnings in your bookmaker’s profits’ calculation, in the accounting period in which they’re actually paid out. Only include customer’s winnings in your calculation from the date you notify them that you’ve credited their accounts and that they’re available for withdrawal. Normally the issue of a statement to your customers will create this date. However, there may be occasions where you can show that they were notified earlier. If so, you’re entitled to include the winning amounts in your calculation from the earlier date.

3.6 Losses

If you make a loss in an accounting period because you pay out more money for winning bets than you’re due from bets made with you, then you’ll have no duty to pay. You must show any loss in the relevant box on the GBD return.

You can carry over any loss for each class of bets (financial spread bets, non-financial spread bets or other bets) from one accounting period into the next. This only applies within each class of bets. You cannot offset duty payable on one class of bets, against any losses you’ve made on another class of bets, for example you cannot transfer a loss on any fixed odds bets to any spread bets, or equally you cannot transfer a loss on financial spread betting to other non-financial spread bets and vice versa.

There is no provision to repay any ‘unused’ loss carried forward. This means that if your business ceases to trade and shows negative figures in its final accounting period, you cannot claim any repayment or refund for that amount.

3.7 Bad debts

There is no duty relief for bad debts. You must include the full value of all bets made with you in your bookmaker’s profits’ calculation, whether or not you received payment when you accepted the bets. A bet is liable to duty even if your customer does not pay you.

3.8 On-course bets

An on-course bet is not a general bet, so is not liable to GBD.

These bets are taken:

• at a horse or dog race meeting where both the person making the bet (and not an agent acting on their behalf) and the bookmaker, or Tote operator, accepting the bets are present
• from a bookmaker, who is not at the meeting, but who makes hedged bets with the bookmaker who is present at the meeting

All other bets are off-course bets and are liable to GBD. This includes bets made over the telephone, or any bets made through a betting exchange.

These can be bets on horse races or bets made on other sports or events, so long as they’re made at a race meeting.

Bets made by UK on-course bookmakers with off-course bookmakers are liable to duty. If you’re an off-course bookmaker you must include the value of bets made with you by on-course bookmakers in your bookmaker’s profits’ calculation.

Anyone who lays a bet through a betting exchange in the course of their business, whether as on-course bookmaker or not, must account for duty on that bet. Hedging a bet however is not the same. Anyone who hedges a bet on a betting exchange in the course of their business, must not include it in their duty calculation. This is not liable to GBD (read paragraph 3.10).

On-course bookmakers who only accept on-course bets do not need to register or, pay GBD. On-course bookmakers accepting dutiable bets will be treated in the same way as off-course bookmakers and must register and complete returns in the same way (read sections 4, 5 and 6), by completing the boxes in the off-course betting section of the GBD return.

As an on-course bookmaker accepting dutiable bets via a betting exchange, you must make sure that you complete the relevant boxes on the return even if these figures result in a loss. Your net profit or loss figure will be provided from the statement of your account provided by the betting exchange you use (read paragraph 3.4.3).

3.9 Bet-broker provisions

The term bet-broker applies to anyone who:

• provides facilities enabling one person to bet against another
• makes or takes a bet for someone else

However, the following are not bet-brokers:

• betting exchanges
• providing facilities for pool betting

3.9.1 Bet-brokers and commission payments

GBD is not charged on commissions earned by bet-brokers. Duty is calculated only from the value of the bets made and the winnings paid out. You must When you calculate your bookmaker’s profits, do not deduct any commissions paid to you from stake money received or winnings paid out.

3.9.2 Acting as an agent

If you act as an agent, in the sense of a ‘middle-person’ between the customer making the bet and the bookmaker taking the bet, we will treat you as a bet-broker and you must account for duty as if the bet was made with you.

Calculate duty on your bookmaker’s profits in an accounting period by:

• adding the value of all agency bets made through you with a bookmaker then
• deducting any bet-related winnings you paid out for the bookmaker

This is not to be confused with an agent in the sense of a tax agent, who represents the bookmaker in submitting their tax returns (read paragraph 4.7.1).

3.9.3 Acting as an agent taking bets for pool betting on horse or dog races

If you accept bets as an agent for pool bets on horse or dog races, you:

• will not be liable to pay duty on those bets
• must not include any stakes and winnings related to these bets in your duty calculations

In this scenario, the duty liability will fall to the pool betting operator.

3.10 Hedged or laid-off bets

These are bets one bookmaker makes with another. Each off-course bookmaker must include in his duty calculations all bets accepted and any winnings he pays out on those bets, including all details of the transactions in his bookmaker’s profits’ calculations. However, the bookmaker who makes a hedged bet, should exclude all details of the transaction from their bookmaker’s profits’ calculation.

For example if bookmaker A accepts a bet from a customer, then he must include the full stake due from, and any winnings paid out to, the customer in his GBD calculation. If bookmaker A then decides to hedge or lay-off some or all of the bet to bookmaker B, then bookmaker B must include the hedged or laid-off bet and any winnings he pays out, in his GBD calculation. Bookmaker A will not include any money he hedges or lays-off, or receives as winnings from bookmaker B from the laid-off bet, in his GBD calculation.

If the hedged bet is made with an on-course bookmaker, duty is only due on the original bet made by the customer with the off-course bookmaker. The amount received by the on-course bookmaker is an on-course bet and is not chargeable with duty.

3.11 Ante-post bets

These are bets you may accept well in advance of the event and where you specify the odds. You must include the value of the stake in your bookmaker’s profits calculation for the accounting period when you accepted the bets.

For example, if you accept a £50 bet in December for the Cheltenham Gold Cup, you must include:

• the £50 in your duty calculations for your December accounting period
• any winnings paid out on this bet in your calculations for the accounting period when it was paid out

3.12 Void bets

When calculating GBD, a void bet is a bet which has been cancelled under your previously agreed terms and conditions of betting.

For accounting purposes, you can cancel the bet by including the returned stake as winnings paid out if:

• you returned the stake to your customer
• you included the bet in your stakes received figure for your bookmaker’s profits calculation when the bet was made

HMRC may ask for proof that a bet has become void. Simply receiving no payment from your customer does not make a bet void.

3.13 Free and discounted bets

You can make promotional offers in the form of free or discounted bets.

Bonuses

The term ‘bonuses’ often applies to free bets. It can also apply to other incentives, including:

• free gifts
• loyalty points, which can be exchanged for a gift, such as a voucher

The value of these incentives always falls outside GBD, whether they are given away or won as prizes.

GBD is due on a free or discounted bet as if it were a non-discounted cash bet.

When used, a free bet effectively becomes a stake, so you must include its notional value in your bookmaker’s profits’ calculation. The notional value is the stake the customer would have paid without the offer.

Cash winnings from free bets can be accounted for in the same way as any other winnings. You cannot deduct any winnings that are not money (read paragraph 3.5).

When used, freeplays are subject to the appropriate tax treatment. This is different for each gambling duty.

To find out how to treat freeplays when calculating PBD, read Pool Betting Duty (Excise Notice 147a).

To find out how to treat freeplays when calculating RGD, read Remote Gambling Duty (Excise Notice 455a).

3.14 Credit bets

The duty liability for credit bets is calculated in the same way as other bets. The fact that you do not receive payment of stake money when the bet is made does not affect the duty liability.

You must:

• account for the value of the stakes in the period when bets are made
• include the amount of any winnings in the period they’re paid out or notified to customers

4. Registration

4.1 Registration applications

All bookmakers liable to GBD must be registered with HMRC.

Applications for registration must be made at least 31 days before your intended start date. This is reduced to 14 days in advance for businesses based in the UK, EU, Gibraltar, the Isle of Man, Norway, the Faroes, Iceland, New Zealand or South Africa.

Any bookmaker who holds, or is required to hold, a ROL must use the online registration system. A paper registration application may only be made by a bookmaker not required to hold a ROL.

The following has the force of law under the General Betting, Pool Betting and Remote Gaming Duties (Registration, Records and Agents) Regulations 2014 made under section 164(3)(a) of the Act

1. Online registration system (GTS)

The applicant, in order to make an online registration application, must:

Step 1. Set up a Government Gateway user ID (if not already set up) by following all prompts.

Step 2. Enter your Government Gateway credentials to Register for gambling taxes.

Step 3. Complete the application in full through the GTS and follow all prompts.

Step 4. Keep records of the on-screen automatic acknowledgment confirming completion of the registration application, together with the unique acknowledgment reference number.

2. Paper registration application

The applicant, in order to make a paper registration application, must complete form GBD1: General Betting Duty — Application to register a business.

When an applicant has completed form GBD1, they must send it by post to:

HMRC
Excise Processing teams
BX9 1GL

Applications sent to any other address may not be accepted.

4.2 Information to include in an application for registration

Applicants for registration using the GTS must follow the prompts and provide the information requested on screen.

Applicants making a paper registration application must complete form GBD1: General Betting Duty — Application to register a business. Form GBD1 asks the applicant to provide the information detailed.

The following has the force of law under the General Betting, Pool Betting and Remote Gaming Duties (Registration, Records and Agents) Regulations 2014 made under section 164 (3)(c) of the Act

HMRC specifies that applicants making a paper registration application must provide the following information:

(a) legal entity type of the business that is the subject of the application
(b) trading name (if any) of the business that is the subject of the application
(c) name, address and contact details of the business that is the subject of the application
(d) other correspondence address (if any)
(e) date of start of taxable betting
(f) an indication of which activities are (to be) offered and which (will) attract GBD liability (off-course betting, spread betting or applicant is a betting exchange) and expected annual taxable profits from each activity indicated
(g) Gambling Commission licence number(s) (if any)
(h) in the case of the business having a sole proprietor, date of birth of the sole proprietor plus National Insurance number (if any) of the sole proprietor
(i) in the case of the business being a partnership, name, address, contact details, dates of birth and National Insurance numbers (if any) of all partners
(j) in the case of the business being a corporate body, date of incorporation and incorporation number — also country of incorporation if not the UK
(k) in the case of the business being a limited liability partnership, date of incorporation and incorporation number
(l) in the case of a business not described in (h) to (k), a description of the legal entity of the business
(m) any reference number issued by HMRC, as requested

4.3 Changes to information given at registration

You must tell us about any changes to, or inaccuracies in, the information supplied on your application for registration within one month of the date of registration or within one month of the changes or inaccuracies happening (whichever is the later).

We’ve made statutory provision for this.

The following has the force of law under the General Betting, Pool Betting and Remote Gaming Duties (Registration, Records and Agents) Regulations 2014 made under section 164(3)(d) of the Act

Notification of changes to application for registration

The applicant (or, if the application has been accepted, the registered person) must notify HMRC of any changes or inaccuracies in the information supplied on their application for registration by the appropriate method. The methods are:

Method 1

Where the application was made using the online registration system, by making the changes through the GTS Online Service.

or

Method 2

Where the application was made on paper, by sending the new or correct information, in writing, to the following address:

HMRC
Excise Processing teams
BX9 1GL

Information sent to any other address may not be accepted.

4.4 Group registration

A group may be formed by corporate bodies under common control. The group must appoint a Group Lead Member (GLM). The GLM must have a principal place of business in the UK.

The common controller itself need not be registerable for GBD.

A corporate body can only join a group registration for GBD if the company itself is registerable for GBD.

All members of a GBD group are jointly and severally liable for all other group members’ GBD liabilities. The GLM must obtain from all prospective group members written confirmation that they consent to joining the group. All prospective group members must confirm to all other (prospective) group members that they understand the position on joint and several liability.

A GBD group registration is only valid for GBD. Any liability to another gambling tax needs a separate registration for that tax.

4.5 How to apply

The following has the force of law under the General Betting, Pool Betting and Remote Gaming Duties (Registration, Records and Agents) Regulations 2014 made under section 164(6) and (7) of the Act

1. Online registration system (GTS)

To register online, the GLM must:

Step 1. Set up a Government Gateway user ID (if not already set up) and follow all prompts.

Step 2. Enter your Government Gateway credentials to Register for gambling taxes

Step 3. Complete the application in full (including any supplementary information in respect of group treatment) through the GTS and follow all prompts.

Step 4. Keep records of the on-screen automatic acknowledgment confirming completion of the registration application, together with the unique acknowledgment reference number.

2. Paper registration application

The GLM in order to make a paper registration application, must complete forms:

• GBD1: General Betting Duty — Application to register a business
• GBD3: General Betting Duty — Application for group treatment
• GBD3A: General Betting Duty — Members to be included in a group

When the GLM has completed the forms they must send them by post to:

HMRC
Excise Processing teams
BX9 1GL

Forms sent to any other address may not be accepted.

4.6 How to change group registration information

The GLM must tell us about any changes to, or inaccuracies in, the information supplied on the application for registration within one month of the date of registration or within one month of the changes or inaccuracies happening (whichever is the later).

We’ve made statutory provision for this.

The following has the force of law under the General Betting, Pool Betting and Remote Gaming Duties (Registration, Records and Agents) Regulations 2014 made under section 164(6) and (7) of the Act

Notification of changes to application for group registration

The GLM must notify HMRC of any changes or inaccuracies in the information supplied on their application for registration by the appropriate method. The methods are:

Method 1

Where the application was made using the online registration system, by making the changes through the GTS Online Service.

or

Method 2

Where the application was made on paper, by sending the new or correct information, in writing, to the following address:

HMRC
Excise Processing teams
BX9 1GL

Information sent to any other address may not be accepted.

4.7 Agents and Representatives

4.7.1 Appointing an Agent

You can appoint someone in the UK to manage your GBD affairs. This person will be your agent and does not have to be an accountant. If you appoint an agent, you will still be liable for paying GBD and any penalties.

You can appoint an agent when you register online or as a change to your existing GTS registration. Your agent must:

• have a Government Gateway ID
• be enrolled for the Gambling Tax agent online service

Your agent will be able to view all your gambling tax liabilities and payments online, as the online GTS covers:

• GBD
• Pool Betting Duty
• Remote Gambling Duty

HMRC cannot discuss your GBD affairs with your agent until they have been authorised.

For more information, read Gambling Tax for Agents: HMRC Online Services.

4.7.2 Appointing a representative

If you are not in a group registration or you’re not based in any of the following places, you’ll need to appoint an HMRC approved representative in the UK:

• the EU
• the UK (excluding the Channel Islands)
• Norway, the Faroes, Iceland, New Zealand or South Africa
• in a jurisdiction which has an agreement with the UK to enforce gambling tax debts for the UK — such agreements are in place with Gibraltar and the Isle of Man

Appointing a representative is part of the online registration process in paragraph 4.1. You can start the approval process before starting your registration.

A UK representative is different from an ‘agent’. If your representative is appointed as a fiscal representative, they must have consented to:

• act on your behalf
• be jointly and severally liable for all your GBD obligations

You may need to provide HMRC with a security if your representative:

• is purely an administrative representative appointed to interact with HMRC
• is not jointly and severally liable for your GBD obligations

4.8 Providing a security

We may require security where:

• you need to appoint a representative in the UK and you choose to appoint a representative who will not be jointly and severally liable for your GBD
• we believe there is a risk to the revenue

We will tell you if we need security and advise you on how to provide it.

For more information about appointing a representative or payment of a security, read General Betting Duty, Pool Betting Duty and Remote Gaming Duty: appoint a representative in the UK.

4.9 Deregistration

If you wish to deregister you must notify us as set out in the following section.

The following has the force of law under the General Betting, Pool Betting and Remote Gaming Duties (Registration, Records and Agents) Regulations 2014 made under section 164(3(e) of the Act

If a registered person (including a group) ceases to be liable for GBD (or, in the case of a group, if the members cease to be eligible to form a group) they must notify HMRC confirming:

• that they’re registered for GBD including their registration number
• the date from which deregistration should take effect
• that after the date of deregistration they will not be engaging in activities liable to GBD

Deregistration notifications must be sent through the GTS Online Service or in writing to the following address:

HMRC
Excise Processing teams
BX9 1GL

Notifications sent to any other address may not be accepted.

If you hold, or are required to hold, a ROL, you must use the online service to notify deregistration. You can only make a paper deregistration application if you are not required to hold a ROL.

You should submit your deregistration notification in the 14-day period before your liability ceases. If your liability has already ceased, submit your notification within one month of the date your liability ceased. HMRC may charge a penalty for failing to tell us about this on time.

5. Accounting periods

You must make returns at the end of each accounting period for your activities during that period. An accounting period is also called a ‘return period’.

A standard accounting period is 3 whole calendar months, starting on the first day of the first month and ending on the last day of the third month.

The following direction has the force of law made under section 165(2) of the Act

HMRC direct that each standard accounting period starts on the first day of a calendar month. This does not preclude non-standard accounting period arrangements being agreed under section 165(3) of the Act.

In the event of a person becoming registered for GBD part way through a calendar month, that person’s first accounting period begins on the date of registration.

Non-standard accounting periods

Section 165(3) of the Act allows HMRC to agree with individual bookmakers that they may follow non-standard accounting periods.

HMRC will only agree to non-standard accounting periods if you:

• first select a pattern of accounting periods based on four 3-month periods in 12 months, each ending on the last day of a month

• then select 8 non-standard period end dates (each end date must be within 16 days before or after the date that would have been the standard end date)

You can continue with non-standard accounting periods after the end of the eighth period. To do this, you’ll need to give HMRC a further 8 non-standard period end dates during the seventh period. If you do not do this, you’ll automatically revert back to the standard accounting periods after the eighth non-standard period.

6. Duty returns

If we do not receive each of your returns by the due date, we may impose a ‘late filing’ penalty.

The due date for each return is the 30th day following the end of every accounting period. If the 30th day is not a business day, the return must be received by the last business day before that day.

In this notice, ‘business day’ means any day except:

• Saturday, Sunday, Good Friday or Christmas Day
• a bank holiday under the Banking and Financial Dealings Act 1971(c)
• a day appointed by Royal proclamation as a public fast or thanksgiving day
• a day declared by an order under section 2(1) of the Banking and Financial Dealings Act 1971 to be a non-business day

6.1 How to submit returns

We’ve made statutory provision for GBD returns.

The following has the force of law under the General Betting, Pool Betting and Remote Gaming Duties (Returns, Payments, Information and Records) Regulations 2014 made under section 166 of the Act

1. Electronic return form

A bookmaker liable to make GBD returns, who holds or is required to hold a ROL, must use the GTS to make those returns.

Any bookmaker may use the GTS to make returns if they so wish.

Any bookmaker who did not use the GTS to register but who wishes to use the service for making returns must obtain a Government Gateway account and enrol with HMRC for the GTS as in section 4.1 above.

2. Paper return form

A bookmaker who is not required to use the GTS to make returns may use the paper form provided by HMRC. This is sent out shortly after the end of the accounting period. Alternatively you can download a digital form which you can complete online before printing. The bookmaker must send the completed form by post to:

HMRC
Direct
BX5 5BD

All boxes on the return must be completed. If there’s no figure to enter into the box then a zero (‘0’) must be entered. HMRC may refuse to accept returns in which boxes have been left blank.

Nil returns

The bookmaker must submit a GBD return even if they do not have any dutiable profits.

6.2 Under-declarations

If you realise you’ve made a mistake on a return or returns which has resulted in you declaring to us less than you actually owe, you must correct that error by one of the following methods:

The following has the force of law under The General Betting, Pool Betting and Remote Gaming Duties (Returns, Payments, Information and Records) Regulations 2014 made under section 166 and section 167 of the Act

Method 1

Write to HMRC about the error. The postal address can be found at Customs, International Trade and Excise where the address is provided under the heading ‘post’.)

Use this method for errors of any size. The letter must detail the amount of the error and the circumstances in which it came about. The amount you owe as a result of the under-declaration must accompany the letter.

Method 2

Enter the amount of the under-declaration in the relevant box on the next GBD return.

Only use the under-declaration box if less than 4 years has passed since the original incorrect return was due, and the overall amount of the under-declaration:

• does not exceed £10,000 (net value)
• does not exceed £50,000 (net value) and will not be more than 1% of the bookmaker’s total profits, or commission charges in the case of betting exchanges in the accounting period during which the error was discovered
• the error was not caused because of lack of reasonable care

HMRC may:

• investigate the circumstances of the under-declaration
• charge a penalty

6.3 Over-declarations

If you have made a mistake on a previous GBD return, and have paid too much duty as a result, you can claim back the amount you overpaid. By law, you must make your claim for an overpayment of GBD by writing to HMRC.

There is no specific form for making a claim. However, all claims must be in writing, on headed paper. Your claim must contain all relevant information, including:

• your registration number
• your full bank account details
• the amount of the claim
• the name of the registered trader
• the name of the person making the claim
• a contact telephone number

Send your claim to:

HMRC
Direct
BX5 5BD

You should keep any documents which support your claim, including documents showing how and when the error arose.

Section 137A of the Customs and Excise Management Act 1979, and regulation 9 of the Revenue Traders (Accounts and Records) Regulations 1992.

6.4 Payments for late registrations

You should register for GBD before you begin any GBD activity or trading.

If you register for GBD after you begin such activities, HMRC will assess you for duty owed in the period between commencement of trading and the date you registered for GBD. We may speak to you before making our assessment so that it correctly reflects what you owe. You will not be able to make a return for the period when you were liable to GBD but not registered.

We may charge penalties for failing to notify us on time.

Do not adjust your return to account for the late payment of duty.

7. Payments

The due date for paying duty is the 30th day following the end of every accounting period. If the 30th day is not a business day, HMRC must receive your payment by the last business day before the 30th day. Read section 5 for more information about business days.

HMRC may charge a penalty if we do not receive duty payments by the due date.

7.1 How to pay

The following has the force of law under the General Betting, Pool Betting and Remote Gaming Duties (Returns, Payments, Information and Records) Regulations 2014 made under section 167 of the Act

HMRC prescribes that payments must be made by one of the following methods:

Method 1: electronically by online bank account payment, Bacs, CHAPS or Faster Payments, or by credit or debit card payment from a UK bank.

Method 2: by post.

Cheques must be made payable to ‘HM Revenue and Customs only’ with your GBD registration number on the reverse. Send to:

HMRC
Direct
BX5 5BD

Method 3: by SWIFT (for payments from overseas which must be in Sterling).

To find full payment details, read Pay gambling duties.

Payment of GBD cannot be made by Direct Debit.

7.2 GBD — joint and several liability

Where GBD is due from a bookmaker, HMRC can recover any unpaid duty from the holder of any licence which:

• authorises the provision of facilities by the business in the course of which the bets were made
• authorises betting at the place where the bets were made

We can also recover duty from:

• anyone responsible for the management of the business
• a director of the business

Remote Operating Licences (ROLs)

You will need a Remote Operating Licence (ROL) from the Gambling Commission (GC) if your business:

• provides facilities for remote gambling
• advertises gambling to consumers in Britain

The ROL should cover all the facilities you provide.

The ROL can cover activities such as taking and settling wagers. If you provide betting under a ROL, HMRC will only recover unpaid duty from you for the business which provided the dutiable betting to the customers. We will not recover duty from other ROL holders who may provide services to you.

Software operating licences

You need a gambling software operating licence to manufacture, supply, install or adapt gambling software used for remote gambling. If you hold a licence, HMRC will not consider these services to be direct provision of facilities for remote gambling to the customer.

Therefore, if you operate only within the terms of your licence and do not also operate as a bookmaker, you:

• are not liable to register for or pay GBD
• will never be held jointly and severally liable for GBD

7.3 Interest

Late payment interest accrues if you’re late in paying what you owe. It is calculated on the outstanding duty from the date the amount became due and payable to the date the amount is actually paid.

Repayment interest accrues where appropriate.

Late payment and repayment interest is calculated on a simple (not compound) basis. This means that interest is:

• charged only on the amount of duty you owe (or the amount of the penalty for late payment interest)
• not calculated on interest that has already been charged or accrued

7.4 Licence revocation

The civil penalty regime exists to address matters such as late filing and late payment of duty. As a remote gambling operator, you can have your ROL removed by the Gambling Commission (GC) if you do not meet your obligations under gambling tax. Without a ROL, you cannot legally advertise to, or do business with, customers in Great Britain. Breaches which may be considered serious include failure to:

• register
• meet specified registration conditions, such as requirements to make records available in the UK
• pay the right amount of duty at the right time
• appoint a representative or provide security as required by HMRC

HMRC decides whether to revoke a ROL, but the action is carried out by the GC. You can ask for a review or appeal to the Tax Tribunal.

Before revoking your licence, HMRC will issue you with ‘Breach notices’. Then, we will take action to suspend your licence, and revoke it if necessary.

At each stage of the process, we may arrange to reinstate your ROL if:

• you have fully remedied the original breach
• there are no other breaches which could lead to your licence being revoked

You can appeal the decision at each stage of the process.

8. Cryptocurrencies

This section has the force of law under section 191(2) of the Act

The value of any amount in any cryptocurrency is the sterling value of the amount at the point the transaction (that is, the payment) takes place.

A record of all relevant checks and transactions must be kept.

For each transaction, the following records must be kept:

• the amount of the transaction in cryptocurrency
• the date and time of the transaction
• the sterling value of the cryptocurrency on that day

The exchange which is used to provide a sterling value must not be a connected company. A ‘connected company’ is to be determined in accordance with Section 1122 of the Corporation Tax Act 2010.

9. Record keeping

If you are a ‘revenue trader’, you must keep records for GBD.

A revenue trader is anyone who:

• carries on a trade or business which constitutes dutiable betting
• manages or administers a Chapter 1 stake fund

To support the figures entered on your returns to HMRC, you must keep:

• all of your business records
• an Excise Duty account

To find out more about the general record-keeping requirements which apply to revenue traders, read Notice 206: revenue traders’ records.

If you are a bookmaker, you must keep all of your business records for 4 years.

9.1 Access to records

As a revenue trader, you must provide HMRC with information and documents from your records within 14 days of a request. We may specify where you need to show your documents — this will always be a place in the UK. If your principal place of business is in the UK, we may visit you.

You must hold and make available your additional records as follows:

The following has the force of law under Regulations 6 and 8 of the Revenue Traders (Accounts and Records) Regulations 1992 and the General Betting, Pool Betting and Remote Gaming Duties (Registration, Records and Agents) Regulations 2014 made under section 168 of the Act

1. All bookmakers liable to GBD must keep:

An Excise Duty account to be known as the GBD account. This must summarise by accounting period the information required to complete GBD returns.

2. Bets taken and winnings paid out

What records must be kept:

• a record of every bet made — each bet must be sequentially numbered and show the time and date when made — where the customer is issued with any form of receipt for their bet, a copy must be kept
• a daily total of money due for each class of bet made
• a record of each amount of money paid out in respect of winning bets — which must be capable of reconciliation with the record of bets made
• a record of winnings paid to customers’ accounts — which must be capable of reconciliation with the record of bets made and with any associated business records including customer statements
• daily totals of winnings paid out, including winnings notified as payments to customer’s accounts, for each class of bet made with or through the bookmaker
• all till rolls, if a till is used

3. Non-cash prizes and free or reduced-cost bets

What records must be kept:

• details of the circumstances in which prizes which are not cash or cash equivalents are given out and the value of such non-cash prizes
• details of any offers of free bets or reduced-cost bets, the take up and use of such offers and the value had the full amount been staked

4. Bookmakers liable to GBD, other than in respect of bets made in a betting shop, must keep the following:

• all information received which is relevant in determining whether or not a person is a UK person
• in support of Step 1 of the process for determining whether a person is a UK person, each address submitted by, or on behalf of, the person as being where they usually live, and the date of receipt of the information by the bookmaker
• in support of Step 2 of the process for determining whether a person is a UK person, all information used to verify that a person is not a UK person, and evidence that this information has been considered to establish whether or not there are 2 indicators that the person usually lives in the UK

5. The manager or administrator of a Chapter 1 stake fund must keep:

• records of amounts assigned to, or otherwise paid into the fund, from whom they’re received and whether or not they’re in respect of amounts paid by a UK person
• records of amounts paid from, or otherwise deducted from the fund and to whom they’re given

6. Records must be retained as follows:

• all records used or created in the course of the bookmaker’s business, or used for the purpose of completing duty returns, must be stored in a readily accessible form and manner for at least 4 years unless an exception applies
• all papers or other media used to record winning bets must be stored in a readily accessible form and manner in daily batches for a period of 6 months after the date when the winnings were paid out, or notified as payments to customers’ accounts
• all papers or other media used to record other bets must be stored in a readily accessible form and manner in daily batches for a period of 6 months after the date when the bets were made

7. Determining the 4-year period

7.1. Documents that record individual events

Records such as invoices should be retained for 4 years from the date of issue but if they refer to a future event they must be retained for 4 years from that future date.

7.2. Documents that record a summary

Records such as a balance sheet or trading account should be retained for 4 years from the date they’re prepared.

7.3 Documents that record a series of events:

• records such as ledgers, daybooks or stock books which are kept in bound books should normally be retained for 4 years from the date of the last entry made in the bound book
• records maintained in loose-leaf binders, on cards and so on, should be retained for 4 years from the date of the last entry on the loose leaf record
• records kept in an electronic format, are to be treated the same way as paper records
• HMRC may, in writing, agree different periods with individual taxpayers in cases of genuine difficulty

8. Making records available to an officer of HMRC

8.1 Bookmakers liable to, or likely to become liable to, GBD and those providing facilities for bookmakers to carry out their business must make available to an officer of HMRC any information or documents which that officer reasonably requires. The information must be made available at a time and place that the officer reasonably requires.

8.2 Information will not be considered as having been made available to an officer of HMRC unless:

• in the case of computerised records and recording systems:

(a) the officer is provided with access to computer records or systems through a bookmaker’s computer in the UK and sufficient support is made available to the officer to enable that officer to navigate the records or systems and a printing facility is provided
(b) the officer is provided in the UK with data extracts following parameters set by the officer (for example, date ranges) in hard copy or in a Microsoft Excel compatible format

• in the case of paper-based record keeping, the officer is provided with access in the UK to paper records
• in the case of a bookmaker who has appointed a fiscal or administrative representative, information or documents reasonably required must be made available through that representative unless agreement is reached with HMRC for some other access arrangement

HMRC will not accept electronic data other than in a Microsoft Excel compatible format.

Each bookmaker registered for GBD has a records requirement attached to their registration. This is clearly stated on the certificate of registration sent to the bookmaker and is as follows:

It is a requirement attached to this registration that you make information to support what you tell us on your returns (as listed in the Record keeping section) available in the UK to an HMRC officer on request. If the business does not comply with this requirement, HMRC can require that any Gambling Commission Remote Operating Licence held is revoked.

9.2 Records held regarding liability before 1 December 2014

Paragraph 9.1 of this notice does not affect records relating to liability before 1 December 2014. You must keep these records in accordance with Excise Notice 451: General Betting Duty.

9.3 Record keeping for a shorter period

If you have a problem with record storage, you can ask HMRC for permission to keep some of your records for less than 4 years.

10. Reviews and appeals

You have the right to ask us for a review, or appeal directly to an independent tax tribunal, on certain decisions we make about your business. Some of these include:

• a person’s liability to an assessed amount of duty
• a person’s liability to pay an assessed amount of duty
• the issue of civil penalties

If you do not agree with a decision, you can:

• ask for it to be reviewed by an HMRC officer not previously involved in the matter
• appeal to an independent tribunal

If you choose to have a decision reviewed, you can still appeal to the tribunal after the review has finished.

For more information, read Disagree with a tax decision.

Your rights and obligations

Read the HMRC Charter to find out what you can expect from us and what we expect from you.

Help us improve this notice

If you have any feedback about this notice, email machinegamesduty@hmrc.gov.uk.

You’ll need to include the full title of this notice. Do not include any personal or financial information like your VAT number.

If you need general help with this notice or have another question contact HMRC excise and gambling duty enquiries.

Putting things right

If you’re unhappy with HMRC’s service, contact the person or office you’ve been dealing with and they’ll try to put things right.

If you’re still unhappy, find out how to complain to HMRC.

How HMRC uses your information

Find out how HMRC uses the information we hold about you.