Corporation Tax Act 2010 section 663

Exemption for UK property income

Section 663 provides an exemption from corporation tax on UK property income for registered community amateur sports clubs, subject to a receipts threshold and a requirement that the income is used for qualifying purposes.

• A registered club can claim exemption from corporation tax on its UK property income if total property receipts do not exceed £30,000 in a 12-month accounting period and all the income is applied for qualifying purposes.
• If the club is only registered for part of an accounting period, that part is treated as a separate accounting period and the income, receipts and threshold are all proportionately reduced.
• For accounting periods shorter than 12 months, the £30,000 threshold is proportionately reduced to reflect the shorter period.
• The Treasury may change the £30,000 threshold by order, but any reduction to the threshold requires prior approval by the House of Commons.