The government is introducing additional tax reliefs for small local sports clubs which it says could benefit more than 40,000 clubs and encourage greater participation in sports at the grassroots level.
The new measures extend the existing Community Amateur Sports Club (CASC) relief and include a new cap on membership costs which means that any club charging more than £31 a week for members will not qualify for the relief. Any club charging more than £10 per week will have to offer alternatives such as special discounts for those who cannot afford membership.
Under the new rules, clubs who generate income with trading subsidiaries such as bars or cafes will be able to donate more of their profits back into the sports club tax free. The new limits allow them to make up to £50,000 from trading (increased from £30,000) and £30,000 from rental income (increased from £20,000) from non-members before paying corporation tax.
The CASC scheme is also being expanded so clubs can support promising players through a wider range of expenses for the first time. To encourage local donations, corporations and local businesses who donate to sports clubs will be able to offset their donation against their corporation tax bill report Harris & Co accountants Northampton, the specialist small business accountants.
Nicky Morgan, economic secretary to the Treasury, said:
‘These new rules will help community amateur sports clubs continue to offer a local, affordable place to take part and I hope that even more people are encouraged to become involved in sport locally.’
HMRC said that currently, 6,000 clubs have benefited from the CASC scheme, saving over £100m in business rates relief, and over £12m from Gift Aid.