Over 40,000 clubs could benefit from an expanded tax relief for local sports clubs, it has been announced by the Government. The expanded grassroots sport relief, extends the existing Community Amateur Sports Club (CASC) relief.

The new measures also bring in a new cap on membership costs. Any club that charges more than £10 per week in membership costs will have to offer alternatives such as special discounts for those who cannot afford it. No club will be able to charge a membership fee of more than £31 per week and get the relief.

The scheme also increases the amount that can be earned tax free from club bars, cafes and venue hire. Clubs who generate income with trading subsidiaries such as bars or cafes will be able to donate more of their profits back into the sports club tax free. This allows the club to keep more of the income from their own members and they will also be able to generate up to £50,000 from trading (increased from £30,000) and £30,000 from rental income (increased from £20,000) from non-members before paying corporation tax.

There is also expanded scope for clubs to pay player fees and expenses. The scheme will be expanded so clubs can support promising players through a wider range of expenses for the first time. To encourage local donations, corporations and local businesses who donate to sports clubs will be able to offset their donation against their corporation tax liability.