Part 13Other special types of company etc
Chapter 9Community amateur sports clubs
Basic concepts
661CAF1The income condition
1
A club meets the income condition for the purposes of section 658 if the sum of—
a
the receipts brought into account in calculating the club’s trading income (“trading receipts”), and
b
the receipts brought into account in calculating the club’s property income (“property receipts”),
does not exceed the relevant threshold.
2
For the purposes of subsection (1), any exemption under section 662 (exemption for UK trading income) or 663 (exemption for UK property income) is to be ignored.
3
For the purposes of subsection (1), if in an accounting period (“period A”) a club becomes, or ceases to be, registered then—
a
the part of period A in which the club is registered is to be treated as a separate accounting period from the remainder of that period, and
b
the club’s trading receipts and property receipts for period A must be apportioned between those periods.
4
In this section—
“property income” means income of a UK property business or an overseas property business,
“the relevant threshold” means—
- a
£100,000 in the case of an accounting period which is 12 months, and
- b
a proportionally reduced amount in the case of a shorter accounting period, and
- a
“trading income” means profits which, if chargeable to corporation tax, would be chargeable under Chapter 2 of Part 3 of CTA 2009 and are—
- a
profits of a trade, or
- b
profits of an activity other than a trade,
- a
whether or not that trade or activity is carried on wholly or partly in the United Kingdom.