Tax Relief for Businesses
Recent legislation has been introduced to allow sports clubs to obtain a corporation tax deduction for donations made into grassroots sports.
The government is encouraging private sector companies to contribute. Under the new legislation, companies can also receive a corporation tax deduction for contributions made; the amount of tax relief is restricted to £2,500.
A payment made by a qualifying sporting body which constitutes qualifying expenditure on grassroots sport is allowed as a deduction against the qualifying sporting body’s total profits in the accounting period in which the payment is made. A payment will be deemed as qualifying expenditure if:
- It is incurred for charitable purposes aimed at facilitating participation in amateur eligible sport; and
- No deduction from total profits would be allowable in respect of the payment under normal circumstances
Prior to this legislation, NGBs could only get tax relief on the contributions made to grassroots sport if made through a charity. The new legislation removes the administrative burden associated with having to do this.
Companies in particular should take the new deduction into account when considering sponsoring or supporting sports club events so why not put £2,500 towards our tour.
*Please note we are not giving tax advice and this should be cleared with your accountant
Why sponsor us
- Potential access to 200k social media followers through our professional club feed
- Visibility of your brand to hundreds of families of children who play for London Irish ARFC with the opportunity to market directly to them
- You are supporting community grassroots sports and developing the children's love of sport