New research reveals how clubs are granted tax breaks

New research by the Sport and Recreation Alliance reveals how community sport and recreation clubs are granted discretionary rate relief by local authorities.

Discretionary rate relief is a tax break which can be granted to not for profit organisations, such as community sports clubs, to help reduce business rates.

This is in addition to the mandatory 80% relief from business rates granted to Community Amateur Sports Clubs (CASCs) and registered charities.

The Sport and Recreation Alliance’s research shows that:

• Discretionary rate relief is being granted to more than 7,700 sport clubs in the UK, but the number varies wildly by region depending on what local authority they reside under.
• The highest number of clubs receiving rate relief on average can be found in Scotland (60), the north of England (30), and Wales (29). London grants rate relief to just 6 clubs on average.
• The North East allocates a £268,000 budget for discretionary rate relief whilst the East Midlands allocates just £75,000.
• Cuts have impacted local authorities differently, with the North East having reduced their rate relief budgets by £14,000, and Wales increasing their budgets by £12,000.
• Nearly half of local authorities (47%) select sports clubs for rate relief based on specific criteria, while a quarter (26%) evaluates each club on its own individual merits.

Andy Reed OBE, Chair of the Sport and Recreation Alliance said:

“One strong theme emerges from our research – and that’s inconsistency.

“Local authorities differ in population size as well as demographic makeup so it is understandable that there are differences in budgets amongst local authorities.

“However, the widely varying approaches to rate relief decisions that are made at a local level can pose a great difficulty for clubs who are planning their future finances.

“Whilst it’s great to see that local authorities are still valuing the vital contribution of sports clubs to the community and continuing to grant discretionary rate relief – especially with the spectre of the cuts looming large – the Alliance would urge councils to implement joined up strategies for sport and recreation locally – of which DRR is a part of, rather than a decision made in isolation.”

Find out more about the Discretionary rate relief for sport clubs research.

Read the Jo Swarbrick’s blog, Rate relief for sports clubs – the differing picture across the UK.

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