The Government announced new proposals for inheritance tax in 2011, which the Sport and Recreation Alliances warmly welcomes. The Government proposes to lower the rate of inheritance tax when at least 10% of an estate is given to a charity or Community Amateur Sports Club (CASC).
At a time when the voluntary sector is being asked to contribute more to society but on tighter budgets, it is this type of incentive that can help to reduce the strain and stimulate engagement in charitable and voluntary organisations.
However, only the 6,000 CASCs would benefit from this measure, yet there are some 150,000 sports clubs in the UK.
The sports sector as a whole would benefit far more if the Government established a ‘Sports Foundation’ – as is the case in Australia – whereby gifts and donations could be pooled into a central fund and then distributed in sport.
In the last ten years, the Australian Sports Foundation has provided over £70 million for sports projects across the country. The Foundation makes it easier for individuals to donate to sport, and would go a long way to meeting the Government's philanthropy objectives.
The Alliance recommends that an equivalent foundation is set up for sport in the UK so that all sports clubs - not just the small proportion that are made up by CASCs and charities – can benefit.
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