Part V8 HMRC Notices | Commentary

701/45/16 Sport

Part V8 HMRC Notices | Commentary

701/45/16
Sport

May 2016

This Notice cancels and replaces Notice 701/45 “Sport and physical education” (August 2011). It has been updated to reflect the changes in the law with effect from 1 January 2015 relating to membership.

You must read it in conjunction with Notice 701/5 “Clubs and associations” and the section on sports facilities and physical recreation in Notice 742 “Land and property

1 Introduction

Main narrative treatment—V4.101, V4.102, V4.161, V4.171.

1.1 What is this notice about?

This notice describes which supplies of sport and physical recreation and physical education qualify for exemption from VAT. It explains—

  1.  

    —     the scope of the exemption from VAT for certain sporting and physical education services supplied by “eligible bodies” and explains how it works in practice;

  2.  

    —     to promoters of competitions in sport and physical recreation the scope of the exemption for competition entry fees and how it works in practice.

1.2 What law applies this exemption?

The legal provisions covering this exemption are in—

  1.  

    —     VATA 1994 Sch 9 Group 10 (not reproduced here); and

  2.  

    —     the Income Tax (Earnings and Pensions) Act 2003 and the Corporation Tax Act 2010, which is cross-referred to in Group 10 (not reproduced here).

1.3 Where can I find more information on the exemption for fund-raising events?

You can find more information in “Fund-raising events: Exemption for charities and other qualifying bodies” and on the following website https://www.gov.uk/government/publications/charity-fundraising-events-exemptions.

2 An overview of the exemption for sporting and physical education services

Main narrative treatment—V4.161.

2.1 What does the exemption cover?

The exemption covers—

  1.  

    —     certain sporting and physical education services by

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