The UK government has published a consultation document in respect of tax relief given to community amateur sports clubs. The current relief gives some tax relief that is similar to the relief given to charities, but policy is being reconsidered in the light of the perceived need to encourage more sporting endeavour following the 2012 Olympics. Comments on the proposals in the document are required by 12 August 2013.

To qualify for tax relief an amateur sports club currently has to be open to all the local community and the document examines ways in which this requirement could be clarified. It includes discussion of the level of fees that could be charged by an eligible sports club, and the possibility that a club with a high membership fee could charge lower fees to people on lower incomes. The document also suggests that a club could be permitted to pay one person fees up to GBP 5,000 in one year to take part in the club’s activities, as a way of attracting professional or other skilled players to give some time to encouraging the development of the sport.

The document discusses loosening the expense allowances that a club could pay to members on match days or tours. The rules would also be clarified on the extent to which people could be members of clubs purely for the social activities, suggesting a definition of social members a requirement that they remain less than 50% of the total membership. Another proposal is to introduce a definition of a guest and clarify rules in respect of the sale of food and drink to guests.

The tax relief under the Gift Aid provisions is not currently open to donations to community amateur sports clubs. The document proposes two alternatives for introducing Gift Aid for donations to these clubs. Firstly, donations by any company to an eligible sports club could qualify for tax relief, or alternatively donations by a company wholly owned by an eligible sports club to that club could qualify for tax relief.