Yacht Clubs benefit from budget

The Chancellor's budget is rarely welcomed, however yacht clubs around the country are set to benefit from a series of tax relief concessions

The Chancellor’s budget is rarely welcomed, however yacht clubs around the country are set to benefit from a series of tax relief concessions.

In pre-budget discussions, it was feared that the Chancellor was going cool on the tax concession proposals and steering clubs towards reconstituting as charities. Now, after an unprecedented 2,400 letters from clubs (including 300 yacht clubs), over 100 Parliamentary questions, and a 148-signature House of Commons Early Day Motion, the Chancellor’s package is doubly welcome and will be a great boost to all sailing club treasurers struggling to balance the books.

Welcoming yesterday’s budget announcement, George Clark, Chairman of the RYA said: “The Government acknowledges that amateur sports clubs are the bedrock of the sport in this country, and that the clubs are also at the heart of community life throughout the country. The new package of tax relief is tremendously welcome, and I am particularly pleased that the relief will take effect immediately. Great credit must go to the CCPR for co-ordinating a very powerful lobby over the past few months.”

Full details of the tax relief package can be found on the HM Treasury website www.hm-treasury.gov.uk/budget

The major implications include:

  • Fundraising income up to £15,000 exempt from tax
  • Income from interest exempt from tax
  • Rental income up to £10,000 exempt from tax
  • Disposals exempt from capital gains tax
  • Gift aid on individual donations
  • Inheritance tax relief on gifts
  • Gifts of assets on no-gain, no-loss basis for capital gains
  • Business relief on gifts of trading stock.

    For further details contact Edmund Whelan at RYA Legal Department, RYA House, Romsey Road, Eastleigh. SO50 9YA. Tel: 02380 627422.