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What is Machine Games Duty (MGD)? When does it apply? What are the rules?

This is a freeview 'At a glance guide.

At a glance

Machine Games Duty (MGD) has applied since 1 February 2013, when it replaced VAT and Amusement Machine Licence Duty (AMLD) charged on the income from gaming machines.

MGD rates

 

Cost to play

Prize

MGD rate

Machine type 1: lower rate

20 pence or less

£10 or less

5%

Machine type 2: standard rate 

21 pence to £5

£11 or more

20% 

All other machine types: higher rate

More than £5

Any

25%

 

Where a machine has more than one game type, the highest applicable rate is used to calculate MGD on all takings. 

MGD registration

Machine Games Duty for Agents

HMRC's Machine Games Duty for Agents service allows agents to carry out a number of tasks online on behalf of their clients.

Key features of the service include:

Overpaid MGD: case law

In Coyles Millar v HMRC [2021] TC08355 the First Tier Tribunal (FTT) found that a four-year limit applies to repayments of overpaid Machine Games Duty (MGD) under section 137A Customs and Excise Management Act 1979.

External links

Excise Notice 452: Machine Games Duty

Machine Games Duty for Agents: HMRC Online Services

HMRC guidance Machine Games Duty


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