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Finance (No. 2) Bill

This has been a useful, well-targeted and focused debate. The amendment is drafted rather widely, but I commend the hon. Members for Falmouth and Camborne (Julia Goldsworthy) and for Fareham (Mr. Hoban) on focusing their contributions tightly on concerns about clubs and societies, thus reflecting representations from the Institute for Chartered Accountants. However, there is no need for an amendment to achieve the result desired by the hon. Member for Falmouth and Camborne. For many years, the Inland Revenue and, latterly, HMRC have not sought corporation tax returns from clubs and unincorporated associations with very small tax liabilities. That practice was established before the introduction of the starting rate of corporation tax, and it will not be affected by the changes in clause 26. Any club or society that is unclear about its tax position should ask its local HMRC office for advice. Clubs and unincorporated associations with larger profits may wish to consider whether they are eligible for the generous tax reliefs resulting from Government changes to existing schemes for grassroots clubs that are genuinely accessible to all under community and amateur sports clubs provisions. The amendment would involve unnecessary costs and complexities, so I hope that the hon. Lady will feel able to withdraw it. The purpose that she mentioned and the hon. Member for Fareham repeated is not being sought. Sensible practices are already in force within HMRC to ensure that the corporation tax regime is applied reasonably in respect of clubs and unincorporated associations. Going further down the path suggested by the amendment, and particularly building it into legislation, would be counter-productive. I hope that the hon. Lady will withdraw the amendment, so that the House can move on to the more substantive questions in the clause stand part debate.