Good news for community amateur sports clubs in the UK.
The Inland Revenue Department has recently announced its intentions to reduce Corporation Tax payments for Community sports clubs in England, Wales and Scotland. Any sports clubs which are registered as community amateur sports clubs with the Inland Revenue will receive 80 per cent mandatory rate relief.
In the Pre-Budget Report, the Chancellor announced his intention to double the Corporation Tax exemptions for Community Amateur Sports Clubs (CASCs) in the next Finance Bill. This will mean that clubs with a trading turnover of less than £30,000 and/or property income of less than £20,000 will pay no Corporation Tax on those sources of income. It is anticipated that these changes will take effect from April 2004. Clubs registered as CASCs in England and Wales will also receive mandatory rates relief of 80% with effect from April 2004 and local councils can increase this relief to 100% at their own discretion.
Scotland's Public Services Minister Andy Kerr said "The Executive is responding to the needs of these small community-based organisations by introducing 80 per cent mandatory rates relief. This will provide a real boost for the many community amateur sports clubs in Scotland and will bring us into line with the rest of the UK."
The Sports Minister for Scotland Frank McAveety said "Sports clubs are a vital part not only of our sporting infrastructure but also of community life throughout Scotland. Two of the key objectives in Sport 21:2003-07 are that over 1 million Scots will play sport in membership of clubs and that Scotland will sustain 150,000 volunteers contributing to the delivery of Scottish sport. This boost to local sports clubs will contribute to achieving these objectives."
Further information can be obtained from the Inland Revenue atwww.inlandrevenue.gov.uk