TC09643 - [2025] UKFTT 01117 (TC)

Unless otherwise stated all statutory references are to FA14.

Section 12 FA94 uncontroversially provides for HMRC to raise assessments to excise duty, including (pursuant to section 167(3) FA14) RGD where there is an omission from or inaccuracy in any return, account, book, record, or other document required to be kept. Such assessments are to be made to the best of HMRC’s judgment and shall not be made more than the later of (1) 4 years or (2) 1 year after the date on which evidence of fact, sufficient in the opinion of the commissioners to justify the assessment, comes into their knowledge.

Chapter 3 provides for RGD. The relevant provisions are:

“155 Remote Gaming Duty

(1)

A duty of excise, to be known as remote gaming duty, is charged on a chargeable person's participation in remote gaming under arrangements (whether or not enforceable) between the chargeable person and another person (referred to in this Part as a “gaming provider”).

(2)

In this Part “chargeable person” means—

(a)

any UK person

…

157 Profits on ordinary gaming

(1)

To calculate the amount of a gaming provider's profits for an accounting period in respect of ordinary gaming—

(a)

take the aggregate of the gaming payments made to the provider in the accounting period in respect of ordinary gaming, and

(b)

subtract the amount of the provider's expenditure for the period on prizes in respect of such gaming.

…

159 Gaming payments

(1)

Where a chargeable person participates in remote gaming, the “gaming payment” for the purposes of this Chapter is the aggregate of—

(a)

any amount that entitles the person to participate in the gaming, and

(b)

any other amount payable for or on account of or in connection with the person's participation in the gaming.

…

(4)

For the purposes of this Chapter—

(a)

where the chargeable person participates in the remote gaming in reliance on an offer which waives all of a gaming payment, the person is to be treated as having made a gaming payment of the amount which would have been required to be paid without the offer (“the full amount”), and

….

(5)

Where a person is treated by subsection (4) as having made a gaming payment, the payment is to be treated for the purposes of this Chapter—

(a)

as having been made to the gaming provider at the time when the chargeable person begins to participate in the remote gaming to which it relates, and

(b)

as not having been—

(i)

returned, or

(ii)

assigned to a gaming prize fund.

(6)

…

(7)

This section has effect subject to section 159A.

159A Play using the results of successful freeplay

(1)

Where a chargeable person participates in remote gaming, an amount is not to be taken into account in determining the “gaming payment” (if any) under section 159 so far as the amount is paid out of money in relation to which the first and second conditions are met (“excluded winnings”).

(2)

The first condition is that the money has been won by participation in the gaming either—

(a)

in reliance on an offer which waives all or part of a gaming payment, or

(b)

in a case where the gaming payment was paid out of money in relation to which this condition and the second condition were met.

(3)

The second condition is that the chargeable person is not entitled to use the money otherwise than for the purpose of participation in the gaming.

(4)

Subsection (5) applies where—

(a)

a chargeable person participates in remote gaming in reliance on an offer which waives all or part of a gaming payment, and

(b)

that offer has been won in the course of the person's participation in the gaming (and the person was not given the choice of receiving a different benefit instead of the offer).

(5)

The amount which would, apart from this subsection, be treated by section 159(4)(a) or (b) as a gaming payment (or additional gaming payment) is not to be so treated.

…

(7)

In this section “money” includes any amount credited and any other money's worth.

160 Prizes

…

(5)

Where a prize is a voucher which—

(a)

may be used in place of money as whole or partial payment for benefits of a specified kind obtained from a specified person,

(b)

specifies an amount as the sum or maximum sum in place of which the voucher may be used, and

(c)

does not fall within subsection (4),

the specified amount is the value of the voucher for the purposes of sections 156 and 157.

160A Prizes: freeplay

…

(2)

Where a prize is a voucher which gives the recipient a choice of using it in place of money for freeplay or as whole or partial payment for another benefit, section 160(5)(b) has effect as if after “used” there were inserted “ if it is used as payment for a benefit other than freeplay ”

3)

In this section—

“freeplay” means participation, in reliance on a freeplay offer, in—

(a)

remote gaming, or

(b)

an activity in respect of which a gambling tax listed in section 161(4) is charged;

“freeplay offer” means an offer which waives all or part of—

(a)

a gaming payment, or

(b)

a payment in connection with participation in an activity in respect of which a gambling tax listed in section 161(4) is charged.”