610A Exemption for proceeds of disposal by sports bodies

This section ensures that a gain by an approved sporting body will get an exemption from capital gains tax if the proceeds of a disposal are used for the sole purpose of promoting athletic or amateur games or sports or, in the case of disposals on or after 1 January 2005, if a portion of the proceeds is paid to a charity.

In the case of a donation by a sports body to a charity, the body concerned must apply to the Minister for Finance for approval to make the donation and specify the charity concerned. The Minister has the power to refuse to grant the exemption if he or she does not believe the public good would be served if the donation were made. The donation must be evidenced by a deed which stipulates that the donation must be applicable and must be applied for the purposes of the charity only and neither the donor nor a person connected with the donor receives a benefit, directly or indirectly, in consequence of making the donation.

The proceeds of a disposal by an approved sports body must be expended within a period of 5 years. However, an extension of the 5-year period is provided for where the body concerned can show that it is in the process of using the proceeds for sporting or charitable purposes.

Relevant Date: Finance Act 2019