The Government announced at Autumn Statement 2015 that it would be consulting on how the corporation tax system could be used to support grassroots sports. The consultation, published on 24 March 2016 and closed on 15 June 2016, considered what sports should be recognised as eligible, how the benefit to grassroots sports should be measured and what expenditure would be treated as a ‘qualifying contribution’.
Following the consultation, The Government has announced that they will be extending the scope for companies to obtain a corporation tax deduction when they make a contribution to grassroots sports. Details will be included in Finance Bill 2017 and will apply to qualifying payments made from 1 April 2017.
These measures will meet The Government’s aims of providing support to grassroots sports by providing relief for companies which incur eligible expenditure.