On 16th November 2017 the Finance Act passed into law introduced a new statutory corporation tax relief for National Governing bodies of sport including the Football Association, clubs and associations for their expenditure on grassroots sports.
The relief will alter the amount of tax that NGB’s will have to pay and also applies to donations given to grassroots clubs and associations in the UK. As important, the relief will apply to companies who donate to clubs and associations without it having to be a designated sponsorship payment.
Companies will be able to claim a deduction for direct payments where the money is used to support grassroots sport up to a maximum of £2,500. However, there is no limit on the number of contributions a club can receive. This means there is nothing to stop a club seeking to attract multiple donations of £2,500 from a range of local companies. Clubs can also apply the deduction themselves providing the funds are spent on qualifying grassroots activities.
Clubs and Associations can backdate the relief for expenditure incurred from 1st April 201
The news is a welcome boost to grassroots sport in the UK. With the opportunity of tax relief from a range of organisations it should increase the quality of playing surfaces, equipment and kits for our teams.