Clause 181 - Rates of gaming duty

Finance Bill – in a Public Bill Committee am 9:45 am ar 18 Mehefin 2013.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Question proposed,That the clause stand part of the Bill.

Photo of Catherine McKinnell Catherine McKinnell Shadow Minister (Treasury)

Clause 181 is a fairly small and technical clause, so I will not detain the Committee long. As I am sure hon. Members know, gaming duty is the duty charged on premises in the UK where dutiable gaming takes place, which includes casino roulette, baccarat and blackjack. I do not suggest that any members of the Committee are fully au fait with those forms  of entertainment, but we are focusing here on their taxable nature. The duty is calculated by reference to balance. As with last year’s Finance Bill, this measure increases the bands in line with inflation, in this case RPI, which is calculated at 3.1%. I have just a small question of clarification for the Minister: how much extra revenue will the Exchequer receive as a result of the rise, and has the Exchequer assessed the possible impact of the rise on the industry?

Photo of Sajid Javid Sajid Javid The Economic Secretary to the Treasury

Clause 181 increases the threshold for the gross gaming yield bands for gaming duty in line with inflation. Gaming duty is a banded tax and paid by casinos in the UK with marginal tax rates varying between 15% and 50%. The public finances assume that the bands are revalorised in line with inflation each year to prevent fiscal drag. Without annual revalorisation, casinos would pay gaming duty at higher rates over time. The change revalorises the banded gaming duty in line with inflation. It is expected by the industry and assumed in the public finances. The rates of gaming duty will remain unchanged. The change will take effect for the accounting period on or after 1 April 2013.

The hon. Lady asked about additional revenues. The gaming duty system is designed progressively to ensure that the most profitable casinos pay the highest rates, with the top rate currently set at 50%. The system ensures that casinos pay their fair share of overall gambling tax receipts. The will have no impact. There is some nominal extra revenue, but there is no change in real terms.

Question put and agreed to.

Clause 181 accordingly ordered to stand part of the Bill.