Volume: 15 Issue: 10
The UK Government is introducing a new tax relief for corporate spending on grassroots sport. This relief is specifically aimed at the grassroots not professional or semi-professional sport and is welcome. As from 1 April 2017 an unlimited corporation tax deduction will be available for payments by National Governing Bodies (‘NGBs’) of sport and companies that make contributions to them for grassroots spending. Other UK companies will be able to deduct up to £2,500pa from their taxable profits for grassroots contributions. With a current corporation tax rate of 19% this new relief should provide valuable help to many voluntary sports organisations that are hard pressed for funds. The Government believes that this will incentivise contributions to grassroots sport at all levels and in doing so facilitate participation. It will help NGBs, their Regional and County Associations and member clubs as well as those companies which make donations to them. This new relief is potentially of wide application and in this article Richard Baldwin MBE, a Sports Tax Consultant and Hon. Tax Adviser to the Sport & Recreation Alliance, explains how sport successfully argued for the new relief, and how it works, and examines the wider opportunities it creates.