Oral Answers to Questions

Debate between Tom Brake and Hugh Robertson

Thursday 3rd November 2011 Commons Chamber

[Hugh Robertson]

Yes, certainly. Was it not in Rugby that William Webb Ellis first picked up a ball and ran with it? That will clearly be a key part of the celebrations in 2015, and we will do everything that we can to support them.

[Tom Brake (Carshalton and Wallington) (LD)]

13. What discussions he has had with the Chancellor of the Exchequer on the effects on levels of participation in sports of the VAT status of sports clubs.

[The Minister for Sport and the Olympics (Hugh Robertson)]

A range of tax benefits is available to community clubs under the CASC—community amateur sports clubs—scheme, including 80% mandatory rate relief, gift aid on donations, and exemption from some levels of corporation tax. I wrote to the Economic Secretary on 10 August to ask that tax exemption thresholds be increased in line with inflation. To date, just over 6,000 clubs have registered and have benefited from an estimated £100 million in savings since the launch of the scheme.

[Tom Brake]

I thank the Minister for his response. Will he look in particular at an issue that has been raised with me by Powerleague, a five-a-side organisation that believes that the tax arrangements on VAT, which had been in place for the past 20 years but have recently been changed, will have a heavy impact on its membership?

[Hugh Robertson]

I wrote to the Treasury to take that issue up on behalf of a number of small five-a-side providers. The issue is not that the regulation has changed but simply that its interpretation has been clarified. Some providers were paying VAT, but others were not. That conversation is ongoing, but the point of the intervention by Her Majesty’s Revenue and Customs was to level the playing field.