Arsenal boosted by £15m tax swing

Arsenal boosted by £15m tax swing

Arsenal Football Club achieves £5m net tax credit after HMRC negotiations, compared to a £10m charge a year earlier

Arsenal
Football Club
has achieved a £15m swing in its favour on its tax
bill.

Releasing its full year results for 2009/2010, the club revealed that it had
“invested significant time and resource” resolving a number of tax issues with
HM Revenue
& Customs
.

The adjustments in bringing the group’s tax affairs up to date saw a net tax
credit of £5m for the period, compared to a charge of £10.3m a year earlier.

Within the credit, the calculation of corporation tax payable includes the
ongoing benefit of changes to taxable profits for the rollover of gains on
player sales, and for its redevelopment of its former ground Highbury into
flats.

Arsenal said that the adjustment relating to the redevelopment reflects the
transfer of the stadium from fixed assets to trading stock in 2006 at its then
market value, and the roll-over of the capital gain which arose on that
transaction.

Further reading:

HMRC
vs five-a-side industry on VAT issues

Exclusive:
UK’s largest football clubs owe £4m in deferred tax

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource