§ Mr. Ashtonasked the Chancellor of the Exchequer (1) what estimate he has made of the total revenue payable by Football League clubs on the imposition of value-added tax of 10 per cent. on their transfer fees and other financial operations;
(2) what estimate he has made of the total of a 1 per cent. value-added tax payable to the Common Market funds imposed on British Football League clubs.
§ Mr. HigginsIt is estimated that if a 10 per cent. value-added tax were placed on admission charges to football matches it would probably produce revenue of the order of £2 million per year. A 1 per cent. rate should produce about one-tenth of this amount.
The application of V.A.T. to football transfer fees should produce no net additional revenue, because of the operation of the normal V.A.T. credit mechanism.