TaxCorporate TaxArsenal 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

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

2m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

8m Emma Smith, Managing Editor
OTS report: Corporation tax should follow accounts

Corporate Tax OTS report: Corporation tax should follow accounts

10m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

11m Emma Smith, Managing Editor
Spring Budget 2017: Making Tax Digital

Business Regulation Spring Budget 2017: Making Tax Digital

1y Shereen Ali, Deputy Editor
Tax fraud loses HMRC £16bn

Corporate Tax Tax fraud loses HMRC £16bn

1y Emma Smith, Managing Editor
HMRC nets £2.6bn in corporate tax from big businesses

Corporate Tax HMRC nets £2.6bn in corporate tax from big businesses

1y Accountancy Age editorial