Tax tips for not-for-profit sports clubs: how VAT impacts on facility improvements

The author’s article a year ago[1] provided an update on the main UK tax changes impacting the finances of not-for-profit sports clubs. This piece intends to concentrate on the costliest of those taxes, which provides a significant barrier to those proactive clubs trying to improve their sports facilities i.e. Value added tax (Vat). It explains why this is the case and describes some recent Vat developments affecting clubs.  Specifically, it examines:

• Not-for-profit sport and Vat in general
• Vat's impact on the not-for-profit sports club
• Exempt supplies
• Partial exemption for Vat purposes
• De Minimis test
• Vat and capital expenditure on improving facilities
• Vat and the Capital Goods Scheme
• Zero rated construction
• The role of the club treasurer
• The way forward