Section 217A — Corporation Tax Act 2010: Relief for expenditure on grassroots sport

Relief for expenditure on grassroots sport 217A 1 A payment made by a company which is qualifying expenditure on grassroots sport (and which is not refunded) is allowed as a deduction in accordance with this section from the company's total profits in calculating the corporation tax chargeable for the accounting period in which the payment is made.

2 The deduction is from the company's total profits for the accounting period after any other relief from corporation tax other than—

a relief under Part 6, b group relief, and c group relief for carried-forward losses.

3 If the company is a qualifying sport body at the time of the payment, a deduction is allowed for the amount of the payment. See section 217C for the meaning of “qualifying sport body”.

4 If the company is not a qualifying sport body at the time of the payment, a deduction is allowed—

a if the payment is to a qualifying sport body, for the amount of the payment, and b if the payment does not fall within paragraph (a) (a “direct payment”), in accordance with subsections (7) and (8).

5 If at any time on or after 1 April 2017 the company receives income for use for charitable purposes which are purposes for facilitating participation in amateur eligible sport, a deduction is allowed only if, and in so far as, the payment exceeds an amount which is equal to the amount of that income which—

a the company does not have to bring into account for corporation tax purposes, and b has not previously been taken into account under this subsection to disallow a deduction under this Part of all or any part of a payment. See section 217B(3) for the meaning of terms used in this subsection.

6 But in any case, the amount of the deduction is limited to the amount that reduces the company's taxable total profits for the accounting period to nil.

7 If the total of all the direct payments made by the company in the accounting period is equal to or less than the maximum deduction for direct payments, a deduction is allowed under subsection (4)(b) in respect of that total.

8 If the total of all the direct payments made by the company in the accounting period is more than the maximum deduction for direct payments, a deduction is allowed under subsection (4)(b) in respect of so much of that total as does not exceed the maximum deduction for direct payments.

9 The maximum deduction for direct payments is £2,500 or, if the accounting period is shorter than 12 months, a proportionately reduced amount.

10 The Treasury may by regulations amend subsection (9) by substituting a higher amount for the amount for the time being specified there.