Corporation Tax Act 2010 section 662

Exemption for UK trading income

Section 662 allows a registered community amateur sports club to claim exemption from corporation tax on its UK trading income, provided its trading receipts fall within a specified threshold and all trading income is applied for qualifying purposes.

• A registered club may claim exemption from corporation tax on its UK trading income if its trading receipts do not exceed £50,000 in a 12-month accounting period (proportionately reduced for shorter periods) and all of that income is applied for qualifying purposes.
• UK trading income covers profits from a trade carried on wholly or partly in the United Kingdom, as well as profits from non-trade activities that would otherwise be chargeable to corporation tax.
• Where a club is registered for only part of an accounting period, that part is treated as a separate accounting period and both the trading income and the receipts threshold are proportionately reduced.
• The Treasury has the power to amend the £50,000 threshold by order, although any reduction to the threshold requires prior approval by a resolution of the House of Commons.