BIM24330 - Mutual trading: community amateur sports clubs: relief available on a claim

You should refer any application to be accepted as a community amateur sports club to CAR (Charities).

Where a community amateur sports club (see BIM24335 for definition) is registered throughout an accounting period the legislation (FA02/SCH18/PARA4) exempts from Corporation Tax income applied for a qualifying purpose. The amount of the exemption is:

• where the club is registered throughout a 12 month accounting period, trading income (before deduction of expenses) that does not exceed £30,000 is exempted, and
• where the club is registered throughout its accounting period being less than 12 months, there is a proportionate reduction in the exemption.

Where the club is registered for part only of an accounting period then the legislation deems that period to be a separate accounting period. The resulting accounting period will be less than 12 months and the proportionate reduction described in the second bullet point above will apply.

The club must claim the relief.

There is a similar exemption for property income but the amount of income (before deduction of expenses) should not exceed £20,000.