Corporation Tax Act 2010 section 665

Exemption for chargeable gains

Section 665 allows a registered community amateur sports club to claim exemption from capital gains tax where the gain is wholly applied for qualifying purposes.

• A registered community amateur sports club that realises a capital gain may claim exemption from corporation tax on that gain.
• The exemption applies to gains that would otherwise be chargeable under the Taxation of Chargeable Gains Act 1992.
• To qualify, the entire gain must be applied for qualifying purposes — that is, the purposes for which the club is established and operates.
• The exemption is not automatic; the club must make an active claim for the gain to be treated as not chargeable.