News Date: Monday 6th June 2005
Tim Loughton MP endorses motion calling for sports clubs to be exempt from corporation tax
Tim Loughton MP for East Worthing and Shoreham recently added his name to a parliamentary motion noting that sport contributes an estimated £5.5 billion to the Treasury and yet sports clubs are expected to pay corporation tax which hinders the amount clubs can spend on sporting equipment and other incentives to get people up and active.
Tim commented:
'With the dramatic rise in obesity and the related increase in diabetes in the UK, we need to consider and act on all the ways of encouraging people to take part in sport and exercise. If sports clubs were exempt from corporation tax, they would have a decent amount of money to spend on modernising sports equipment, and increasing the variety and range of sports available, and this would appeal to a great number of people who have remained unconvinced about the obesity debate, despite the high profile it has had recently.
We want to see people getting involved with more active and healthy lifestyles and I believe that a large number of people would sign up to sports clubs and remain committed to them if they were kept modern and varied.'
ENDS
Note to Editors:
Tim signed Early Day Motion 9 'Corporation Tax and Sports National Governing Bodies'
That this House notes that sport contributes an estimated £5.5 billion to the Treasury; observes that sports national governing bodies are non profit-making organisations; and urges the Treasury to make them exempt from corporation tax provided that they invest that money on the grassroots development of their sport.
