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Is Covid grant paid to sports club taxable?

£10k received by a mutual sports club; is is taxable

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We act for a small sports club who have received £10,000 via the local Council as they have a rateable property (the Clubhouse).  Ordinarily any surpluses made are not taxable as a mutual trader, except for external sources, such as bank interest.  As this is an external source of income, albeit to cover lost mutual income, should it be subject to Corporation tax (it is a limited company).  My thinking is 'yes' but I cannot find anything online to give a definitive answer.  Any thoughts please?

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By David Ex
14th May 2021 11:21

It has been discussed before. I’ve not been involved so no knowledge of details but found this:

https://www.accountingweb.co.uk/any-answers/are-covid-grants-to-a-social...

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By carol.w
14th May 2021 11:38

Thank you. I followed the links in the various posts which then directed me to FA 2020 Sch 16 which is exactly what I was after.

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By Hugo Fair
14th May 2021 11:40

To save following the full trail, the (pleasant) answer - that there is an exemption for mutual trades - is at ...

https://www.legislation.gov.uk/ukpga/2020/14/schedule/16/enacted
under- Exemptions, reliefs and deductions

Edit: you beat me to it!

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By johnt27
18th May 2021 09:12

If the income of the club is 100% mutual then the grant received will be treated as such, if not then your grant should be apportioned based on a fair representation of mutual/non-mutual splits in the past.

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