§ Mr. J. Howardasked the Chancellor of the Exchequer whether he is aware that the Special Commissioners of Income Tax upheld an appeal by a football supporters club against tax assessments on a football pool run by the club; and how far this decision will be followed by the Inland Revenue in other similar cases.
§ Mr. H. BrookeYes. The football pool in this case was organised on the basis that a specified percentage of the sum received from each competitor would be paid as a gift to the football club. The Special Commissioners have held that this donation element formed no part of the receipts to be taken into account in computing for Income Tax purposes the profits of the trade of promoting the pool. This decision will be accepted by the Inland Revenue as governing all cases where a football pool or small lottery is88W run by a supporters clubs or other society on the basis that a stated percentage or fraction of the cost of each ticket or chance will be given to a club or body established and conducted wholly or mainly for one or more of the purposes specified in subsection (1) of Section 1 of the Small Lotteries and Gaming Act, 1956.