Tax tips for not-for-profit sports clubs: how VAT impacts on facility improvements

Published 09 December 2019 By: Richard Baldwin MBE; FCA; CTA; B Com

Cricket

The author’s article a year ago[1] provided an update on the main UK tax changes impacting the finances of not-for-profit sports clubs. This piece intends to concentrate on the costliest of those taxes, which provides a significant barrier to those proactive clubs trying to improve their sports facilities i.e. Value added tax (Vat). It explains why this is the case and describes some recent Vat developments affecting clubs.  Specifically, it examines:

  • Not-for-profit sport and Vat in general
  • Vat's impact on the not-for-profit sports club
  • Exempt supplies
  • Partial exemption for Vat purposes
  • De Minimis test
  • Vat and capital expenditure on improving facilities
  • Vat and the Capital Goods Scheme
  • Zero rated construction
  • The role of the club treasurer
  • The way forward

 

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Author

Richard Baldwin MBE

Richard Baldwin MBE; FCA; CTA; B Com

Richard Baldwin MBE; FCA; CTA; B Com (Sports tax consultant)

Richard has specialised in the taxation of sport for almost 40 years. Until 2005 he was Tax Partner in Deloitte's London Office leading its sports tax practice. Since leaving Deloitte he spends most of his time advising clubs on tax particularly CASC and charity status. Much of his time is provided on a pro bono basis. He was awarded the MBE for his services to sport in 2013.
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