Corporation Tax Act 2010 section 668

How income and gains are attributed

Section 668 deals with how a registered community amateur sports club can choose which of its exempt income and gains are to be reduced when it has incurred non-qualifying expenditure under section 666.

• A registered club may choose which specific income and gains are to be reduced, in whole or in part, as a result of non-qualifying expenditure under section 666, and must notify HMRC of that choice.
• If HMRC requests the club to specify which income and gains are to be reduced, the club has 30 days from the date of that request to respond with its notice.
• If the club fails to respond within the 30-day period, an HMRC officer may step in and determine which income and gains are to be reduced.
• The HMRC officer's determination can reduce the relevant income and gains either in whole or in part, just as the club itself could have chosen to do.