Other Measures Announced

Charities

Charities who provide benefits in exchange for donations are subject to financial limits in respect of the value of such benefits. These limits will broadly double with regard to donations in excess of £1,000, with effect from 6 April 2007.

Insurance premium tax (IPT) - definition of 'premium'

The definition of a 'premium' is to be clarified and will extend to cover any payment received in respect of a right to require an insurer to provide cover under a taxable contract of insurance.

Remote gaming duty - a new 15% tax

A new duty is to be introduced, probably on 1 September 2007 that will affect all those who provide remote gambling. Remote gambling refers to the playing of a game of chance for a prize by the use of a 'remote' communication, such as the internet, telephone or television. The significance of the timing of the introduction of the new tax is that it is the intention to align this with the full implementation of the Gambling Act 2005.

Gaming duty

The Gross Gaming Yield (GGY) bandings and rates of duty for casino operators is changed and comes into effect for six month accounting periods starting on or after 1 April 2007.

GGY duty band	Percentage of tax
The first £1,836,500	15
Next £1,266,000	20
Next £2,217,500	30
Next £4,680,000	40
Remainder	50

Purchased Life Annuities (PLA)

The Chancellor proposes to re-write the PLA regulations. To make way for this re-write he proposes to repeal the requirement that an office of HM Revenue and Customs must determine the tax-exempt capital element of a PLA, calculated by the insurer. The measure will have effect on or after a date to be appointed by Treasury Order.

Recognition of Stock Exchanges and the definition of 'listed' for tax purposes

On and after Royal Assent to the Finance Bill 2007, HM Revenue and Customs will be allowed to designate as a recognised stock exchange for tax purposes any investment exchange designated as a recognised investment exchange (RIE) by the Financial Services Authority (FSA). This is to ensure that equal tax treatment is obtained for FSA listed shares, regardless of which RIE is used as the primary market for the shares. The legislation will also put in place a definition of the term 'listed' and will update references used in conjunction with 'listed' and 'stock exchange' to reflect regulatory and market changes.