Football Pool Winnings (Capital Gains Tax)

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 31 January 1967.

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Photo of Mr Nigel Fisher Mr Nigel Fisher , Surbiton 12:00, 31 January 1967

asked the Chancellor of the Exchequer whether he will seek to make football pool winnings liable to the Capital Gains Tax.

Photo of Mr Jack Diamond Mr Jack Diamond , Gloucester

No, Sir, because they are not derived from assets. We deal with football pools by charging Pool Betting Duty at the rate of 25 per cent. of the stake money.

Photo of Mr Nigel Fisher Mr Nigel Fisher , Surbiton

Is the right hon. Gentleman aware that in the United States of America, for example, every form of capital gain is subject to tax? Why, in this country, should furniture, pictures, and that sort of thing be considered fiscally, and apparently socially, more reprehensible than football pool winnings?

Photo of Mr Jack Diamond Mr Jack Diamond , Gloucester

I have already explained to the hon. Gentleman the reason why this, not being an asset, is not subject to Capital Gains Tax. I am most grateful to him for his reminder that in the United States there has been a Capital Gains Tax for a very long time, and with wider application. Perhaps he would remind his right hon. and hon. Friends of that.

Photo of Mr Eric Lubbock Mr Eric Lubbock , Orpington

Is the right hon. Gentleman aware that when we on this bench introduced an Amendment to the 1965 Finance Bill to give effect to this proposal, the party of which the hon. Member for Surbiton (Mr. Fisher) is a member voted against it? In spite of that, will he reconsider his decision not to discuss the taxing of capital gains on pools win-nines since it is irrelevant from the point of view of the recipient whether it is an asset or not?

Photo of Mr Jack Diamond Mr Jack Diamond , Gloucester

It is not irrelevant, from the point of view of having a sensible and acceptable tax, that it should work on principles which are well understood, notwithstanding the inconsistencies of hon. Gentlemen opposite.