Machine Games Duty (MGD), a tax on gaming machines, was introduced on 1st February 2013 and replaced both Amusement Machine Licence Duty (AMLD) and the payment of Output VAT on machines takings.
It is payable on the net takings of any machine having the facility to pay out a cash prize greater than the cost to play. This includes gaming machines of all categories except B3A, and also covers quiz machines that pay out a cash prize.
Category B3A is the only gaming machine that is exempt from MGD. Pull tab vending machines are also unaffected and remain exempt from all taxes.
Note: HM Revenue and Customs (HMRC) could levy a penalty if you provide machine games for play before your registration is fully processed and your details entered on the MGD Register.
Excise Notice 452: Machine Games Duty - This notice explains how Machine Games Duty is charged and who has to pay.
How to submit your MGD return online: https://www.gov.uk/machine-games-duty-online
How to pay MGD: https://www.gov.uk/pay-machine-games-duty
Machine Games Duty, guidance and notices: https://www.gov.uk/machine-games-duty
Download the registration form: https://www.gov.uk/government/publications/gambling-duties-machine-games-duty-application-to-register-a-business-mgd1
Register online: https://www.gov.uk/machine-games-duty