§ Mr. ToddTo ask the Chancellor of the Exchequer if he will review the provisions of the Value Added Tax (Sport, Sports Competition and Physical Education) Order 1998 to resolve the different VAT treatment of private and proprietary golf clubs. [65161]
§ Dawn PrimaroloThe Order, which was designed to prevent tax avoidance, was withdrawn and an announcement about a replacement will be made as soon as possible. The Government understand the problems of both types of golf club and have arranged for HM Customs and Excise to discuss these with the European Commission, in the light of the recent European Court of Justice ruling in Commission of the European Communities vs the Kingdom of Spain (Case C-124/96, Judgment of the Court, Sixth Chamber, of 7 May 1998).