Charity tax breaks for clubs

Charity tax breaks for clubs

The rules governing charitable status could be relaxed to allow clubs and voluntary groups to enjoy tax breaks normally reserved for charities.

A new category of charity would be created so the voluntary groups, mutual societies and sports clubs do not have to meet the existing strict legal and operational criteria of charitable status.

The idea is being given serious consideration by ministers following a report from the Performance and Innovation Unit, a Blairite think-tank on the legal framework for charities.

Chancellor Gordon Brown has signalled his support for the initiative, which would allow small, poorly funded clubs benefit from tax breaks without the expense of becoming a registered charity.

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