Pure Gym chief makes call for VAT-free memberships

The boss of Leeds-based Pur Gym is urging the government to remove VAT from gym memberships.

Humphrey Cobbold told Radio 5 live that price was “the single most important” factor when deciding whether to join a gym.

VAT at the standard rate of 20% is charged on gym memberships and passed on to customers.

The Treasury suggested its hands were tied by European Union VAT rules, BBC News reported.

Cobbold said his customers were not “in perfect nick physically” and were working hard to get themselves “in better body shape and better mental shape”.

“It seems a little bit strange for the government to tax that at 20% when we want more people to be doing it,” he told Wake Up to Money.

“Price is the single most important thing, particularly in some of the more low earning [parts of Britain] where I am passionate that we continue to open facilities.”

A Treasury spokesperson said: “If a gym does not make a profit its members will pay no VAT on membership fees under EU law.

“But until we leave the EU it is not possible to extend this exemption to profit-making gyms.”

PureGym saw revenues climb 24% to £198m in the year to December while membership grew to 927,000 and 20 new sites were opened across the UK.

Earnings grew £64m from £39m which it said was driven by new site rollout and innovative membership propositions.

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