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.
To find out more click here; http://www.sportandrecreation.org.uk/news/20-01-2014/new-research-reveals-how-clubs-are-granted-tax-breaks
