Tax strategy for sport
Taxation is complicated business, especially for a community sports club run by volunteers.
Using the results of the 2011 Sports Club Survey, the Alliance has proposed and modelled the costs for a number of tax proposals which would help sport across the UK at all levels.
For more information, download our full briefing and modelling.
Here are some of the proposals which would help sport and recreation:
- Community Amateur Sports Clubs (CASCs) should be able to claim Gift Aid on their members’ subscriptions. Charities preserving historical buildings, zoos and so on can so why not sport?
- Sports clubs should be included in HMRC’s definition of a charity for VAT purposes.
- Corporation tax allowances for safety improvements to stadia should not be abolished.
- A nil-rate band for Community Amateur Sports Clubs for corporation tax should be introduced for clubs with a surplus of less than £15,000.
- VAT should not need to be paid on construction costs by local authority schools when a school opens up its facilities to community use.
- The amount sports clubs are allowed to reclaim in VAT if they have exempt supplies should rise in line with inflation.
- Major international events which UK NGBs bid for should benefit from tax concessions.
- As in the rest of Europe, endorsement income earned by overseas competitors should be exempt from tax.
- As in in most of Europe, NGBs should be exempt from Corporation tax.
- As in countries like Holland, Value Added Tax concessions should be made in order to reduce the burden of the tax on sport in the UK as allowed by the EU VAT Directive.
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