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

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