HC Deb 20 May 1958 vol 588 cc1072-3
2. Mr. Hoy

asked the Chancellor of the Exchequer whether he has considered the representations of the Scottish Rugby Union regarding the proposed new rate of Profits Tax, a copy of which has been sent to him; and what he expects the yield of this tax to be in the present financial year.

Mr. Amory

Yes, Sir. In common with other bodies, the Scottish Rugby Union will be liable to Profits Tax at 10 per cent. on its profits. The new rate applies only to profits arising after 31st March, 1958, and the effect on the yield in the present financial year is likely to be small.

Mr. Hoy

Will the Chancellor reconsider this in the course of the Finance Bill? Associations of this kind do not distribute profits. Surely, ought not those who do such good work as these people at least to be left the little they have and not have it taxed by the Chancellor?

Mr. Amory

The changes I am proposing, of course, are based upon the recommendation of the Royal Commission, which recommended that Profits Tax should be levied on all profits of all corporations of every kind, at a uniform rate.

Mr. H. Wilson

But is not this a matter for Parliament to decide, not for the Royal Commission? Is not there mounting evidence that this particular proposal of the Chancellor has been made in a very ill-considered way, in view of the evidence now accumulating, such as that given by the hon. Member for Huddersfield, West (Mr. Wade) during the Second Reading debate and other facts now coming forward, showing that a large number of non-profit-making organisations which would not dream of distributing dividends are being very seriously prejudiced? Will the Chancellor look at the matter again before we come to the appropriate part of the Finance Bill?

Mr. Amory

It is likely that I shall be compelled to listen to discussion on this matter again, because we shall have an opportunity of discussing these matters during the forthcoming weeks.

Mr. Gower

Is not it possible that bodies like the Royal Commission would underestimate the importance of games like Rugby? Will my right hon. Friend reconsider this, in the light of the fact that organisations of this kind usually use the money by ploughing it back for the benefit of the clubs and to reinvigorate the game, where it is most important, at club level?

Mr. Amory

I cannot express an opinion about how much importance the Royal Commission attached to the game of Rugby football, but I am perfectly prepared to listen to arguments which may be advanced on this matter, as on all relevant matters, during the course of discussions on the Finance Bill.

Mr. J. Griffiths

Will the Chancellor bear in mind that the profits of the Rugby unions are devoted to assisting small village clubs in all parts of the country and that, if these profits are denied them for that purpose, the clubs will break down and the right hon. Gentleman will have destroyed one of the most important amenities in every village in Wales and Scotland and elsewhere? Will he bear this closely in mind?

Mr. Amory

I certainly will bear that in mind, together with all other relevant points.