April 17 2002
(See
the full text of the Chancellor's speech here!)
SUPPORT FOR COMMUNITY AMATEUR SPORTS CLUBS
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."
DETAILS
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
basis.
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: www.charity- commission.gov.uk
NOTES
Sports clubs have long sought, in their own words, "parity
with
charity".
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.
HM TREASURY PRESS OFFICE
Non-media enquiries: 020 7270 4558
Internet site: www.hm-treasury.gov.uk
INLAND REVENUE PRESS OFFICE
Non-media enquiries: 020 7944 3000
(office hours only)
Internet site: www.inlandrevenue.gov.uk
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