§ 7. Mr. William Priceasked the Chancellor of the Exchequer whether he will exempt football clubs from corporation 1335 tax in respect of money spent on ground improvements.
§ Mr. Patrick JenkinNo, Sir.
§ 8. Mr. William Priceasked the Chancellor of the Exchequer whether he will withdraw the exemption of football clubs from corporation tax in respect of money spent on acquiring players.
§ Mr. Patrick JenkinNo, Sir.
§ Mr. PriceIs it not strange that a club spending £150,000 on a footballer is exempt from taxation when a club spending a similar sum of money on ground improvements is subject to corporation tax? Will the Minister seriously consider, in the interests of ground safety, relieving the tax burden on ground improvement and, if necessary, imposing it upon the transfer of players?
§ Mr. JenkinI am sure the House would be impatient if I delivered the hon. Member a lecture upon the difference between capital and revenue—
§ Mr. Jenkin—but I appreciate that there is a serious intention behind the hon. Member's question. I would only ask him to believe that it raises very much wider implications than football clubs.
§ Mr. Merlyn ReesDoes the hon. Member realise that on either side of the House we will not be lectured by anyone? Would he put his mind instead to the real problem of safety at football grounds that has been put to me by Leeds United Football Club? This is a problem exercising the minds of many hon. Members.
§ Mr. JenkinI did say that I recognised there was a serious point behind the hon. Member's question. There is a good deal of expenditure on safety which certainly qualifies for deduction as revenue expenditure. If there is any particular case which Leeds United or any other club would wish to have examined I would be happy to look at it.