In London Clubs Management v HMRC [2016] UKUT 259 (2 June 2016) the UT reversing the decision of the FTT found that free bet vouchers and non-negotiable chips given freely by casinos to their customers had not value in money or money’s worth.
A casino provided players with free of charge free bet vouchers or ‘non-negotiable’ chips and the issue was their face value for gaming duty purposes. A non-negotiable chip can only be used to place a bet at the gaming tables; unlike a cash chip it cannot be cashed or used to pay for goods and services. Free bet vouchers are similar to non-negotiable chips and both are referred to as ‘Non-Negs’.
London Clubs contended that the FTT had misconstrued FA 1997 s 11(10)(a) as there was no value in money or money’s worth in a stake staked by means of a Non-Neg ...
