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HMRC internal manual

VAT Betting and Gaming Guidance

From
HM Revenue & Customs
Updated
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UK VAT law

The relevant UK legal provision can be found at Schedule 9, Group 4 of the VAT Act 1994 which reads:

Group 4 - Betting, gaming and lotteries

Item No

1

The provision of any facilities for the placing of bets or for the playing of any games of chance for a prize.

1A The provision of any facilities for the playing of dutiable machine games (as defined in Part 1 of Schedule 24 to the Finance Act 2012) but only to the extent that-

(a)the facilities are used to play such games, and

(b)the takings and payouts in respect of those games are taken into account in determining the charge to machine games duty.

2

The granting of a right to take part in a lottery.

NOTES

(1) Item 1 and 1A do not include-

  1. admission to any premises; or
  2. [omitted by Finance Act 2009, s.113(2);]
  3. the provision by a club of such facilities to its members as are available to them on payment of their subscription but without further charge;
  4. [omitted by FA 2012, s.191 and Sch. 24, para. 64(3)(b).]

(1A) Item 1 does not apply to the provision of facilities to the extent that the facilities are used to play a relevant machine game (as defined in section 23A).

(2)“Game of chance”-

  1. includes-
(i) a game that involves both an element of chance and an element of skill,

(ii) a game that involves an element of chance that can be eliminated by superlative skill, and

(iii) a game that is presented as involving an element of chance, but
  1. does not include a sport.

(3) A person plays a game of chance if he participates in a game of chance-

  1. whether or not there are other participants in the game, and
  2. whether or not a computer generates images or data taken to represent the actions of other participants in the game.

(4) “Prize” does not include the opportunity to play the game again.