Tax relief to help UK grassroots local sport clubs

The new scheme is being run in conjunction with the FA and other sports groups

The government is to give new tax breaks to small sports clubs in an effort to boost participation.

More than 40,000 clubs could benefit by being allowed to keep up to £100,000 each in additional revenue.

Clubs can earn the cash from bar receipts and hire of facilities before having to pay any corporation tax.

The move is part of the government's promise to create a sporting legacy following London 2012, something which some critics say is not being achieved.

Earlier this month the House of Lords Select Committee on Olympic and Paralympic Legacy said the Games were an "outstanding success",

But it urged the government to appoint a minister with overall responsibility for producing legacy benefits which, it warned, "are in danger of faltering".

Donation changes

The new changes to the Community Amateur Sports Club (CASC) scheme come after a consultation over the summer.

Clubs will now also be able to deduct more travel and subsistence expenses for key players or trainers.

And to attract money into clubs, companies will be able to deduct in-full donations to a club from their tax bill. It is hoped this will encourage larger donations from corporations and local businesses.

To take advantage of these tax reliefs clubs must charge no more than £31 per week in membership fees as well as offering reduced rates for the less well off.

The new scheme is being run in conjunction with the Football Association and other sports groups.

So far some 6,000 clubs have benefited from the CASC scheme, saving over £100m in business rates exemption, and more than £12m in Gift Aid relief.

However, there are no changes on the status of PAYE payments due for employees - such as bar staff - at small clubs, an issue where some sporting organisations had hoped to see an alteration to the rules.