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 UK Budget 2002 - Related Government Press Releases

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April 17 2002



(See the full text of the Chancellor's speech here!)


Following consultation, the Budget introduces a package of tax
reliefs to support community amateur sports clubs (CASCs). The tax
package provides an alternative route for CASCs to access tax reliefs
on their income and donations from local people, which are similar to
the tax reliefs normally given to charities. It will be available
for CASCs who cannot or do not wish to apply for charitable status.

In addition to the tax reliefs, the Budget allocates a further #20
million from the Capital Modernisation Fund to renovate and improve
community sports facilities.

The Charity Commission will publish tomorrow its revised guidelines
for applying for charitable status, reflecting the input of the
sports sector. Sports clubs are free to choose to apply either to
the Charity Commission for charitable status, and the tax treatment
that goes with charitable status, or directly to the Inland Revenue
for the tax reliefs specifically for CASCs.

Announcing this package of support, Paul Boateng, Financial Secretary
to the Treasury, said:

"Amateur sports clubs are at the heart of sport and community life up
and down the country. The Charity Commission's decision to recognise
as charitable CASCs that "promote community participation in healthy
recreation" will enable many sports clubs to access the valuable tax
benefits that go with charitable status. However, the Government
wants to ensure that financial benefits reach all sports clubs. The
Budget therefore introduces a package of tax reliefs to enable clubs
to reduce tax bills on any income and gain additional benefit from
donations made by local people. In addition, a further #20 million of
capital expenditure will be made available for investing in enhanced
community sports facilities. Together these measures provide an
unprecedented boost for community sport."


Tax package for CASCs

The tax package is as set out in the November 2001 consultation
document, "Promoting Sport in the Community". The main reliefs,
available from April 2002 are:

- Fundraising income up to #15,000 exempt from tax;

- Income from interest exempt from tax;

- Rental income up to #10,000 exempt from tax;

- Disposals exempt from capital gains tax;

- Gift aid on individual donations;

- Inheritance tax relief on gifts;

- Gifts of assets on no-gain, no-loss basis for capital gains;

- Business relief on gifts of trading stock.

To benefit, CASCs must be open to the whole community, organised on
an amateur basis, and their main purpose must be to provide
facilities for, and promote participation in, an eligible sport.
Eligible sports will initially be defined with reference to those
recognised by national Sports Councils.

#20 million for community sports facilities

To support capital investment to improve public services, the
Government set up the Capital Modernisation Fund (CMF) in the
Comprehensive Spending Review. The CMF provides capital resources to
fund innovative methods of improving the quality of public services
across all government departments. Between 1999-00 and 2003-04 the
CMF will allocate nearly #5 billion to departments on a competitive

An allocation of #20 million will be made available in 2003-04 for
DCMS to distribute, with the help of Sport England. The money will be
used to enhance community sports facilities through either major
refurbishment or replacement of existing amenities.

Charity Commission guidelines

Revised guidelines for applications for charitable status will be
published tomorrow, reflecting input from sports' representative
bodies. Full details available from the Charity Commission's
Internet site:


Sports clubs have long sought, in their own words, "parity with

The Chancellor of the Exchequer said in his 2001 Budget statement on
7 March, "At the centre of our communities are also thousands of
non-profit sports clubs, and we will now consider the best way for
the tax system to give them further support and to recognise their
contribution to our community life."

A tax package was prepared in consultation with sports clubs and
their representative bodies. At the same time, the Charity
Commission's review of its registers concluded that it would
recognise as charitable "the promotion of community participation in
healthy recreation by the provision of facilities for the playing of
particular sports".

On 30 November 2001, a consultation document - 'Promoting Sport in
the Community' - was published, announcing the details of a tax
package alongside the Charity Commission decision. The consultation
process gave sports clubs and their representative bodies an
opportunity to reflect on the Charity Commission's decision and say
if they thought it would not work for them. Sports bodies have also
made representations to the Charity Commission to revise and improve
on the guidelines originally published.

A summary of responses to the consultation "Promoting Sport in the
Community" is available from the Treasury's Internet site.


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last modified: April 17, 2002