VAT On Leisure Facilities

EDM number 306 in 2007-08, proposed by Danny Alexander on 19/11/2007.
Categorised under the topics of Leisure, Sports and Taxation.

That this House notes the provision by many local authorities of access-for-all cards to maximise participation in local leisure facilities managed by local trusts; notes the implications of the recent decision in the Court of Session, in a case brought by Her Majesty's Revenue and Customs (HMRC) against the Highland Council, that such trusts are liable for a substantial additional VAT bill on the fees for these access cards; notes that HMRC is now pursuing Inverness Leisure for an estimated £200,000 in unpaid VAT; believes that, with 122 such trusts across the UK, HMRC is now seeking more than £25 million from such trusts; understands that if funds have to be found to meet these costs the options will be reduced hours, lost jobs and higher entry fees at leisure facilities across the UK; further believes that such an outcome would make such facilities less accessible to people on low incomes and undermine efforts to promote healthy living, sport and the fight against childhood obesity; further believes this effect will be particularly damaging as London prepares for the 2012 Olympics and Glasgow prepares for the 2014 Commonwealth Games; and calls on HMRC not to pursue back payment of VAT in these cases in recognition of the wider health, social and economic benefits that local leisure facilities provide.

This motion has been signed by a total of 38 MPs.