VSPORT2050 - Sports Lets and Sports Facilities

Sports Lets and Sports Facilities

The three conditions that must be met for exemption under Group 10, Item 3 are that, the:

• Supply is made by an eligible (non-profit-making) body.
• Supply is made to an individual taking part in sport.
• Services must be closely linked with and essential to sport or physical education.

The granting of facilities for playing any sport or participating in any physical recreation is normally excluded from the land exemption under Group 1, Item 1 of Schedule 9 by virtue of Note 1(m) to that Group. However, Note (16) to Group 1 exempts certain grants where there is a continuous period of use exceeding 24 hours, or a series of 10 or more periods.

The hire of a pitch to a non-profit making club or association would qualify as a supply to an individual or individuals where the benefit of the supply is to individuals (members) taking part in sport and all the above three bullet points are met.

The hire of an individual squash court to individuals on the day would also qualify provided that the supply is made by an eligible body. The same is true where there is a payment of an entrance fee to an eligible body for access to its sporting facilities such as a swimming pool or green fees to enjoy a round of golf.

The hire of land can also qualify as sporting facilities provided that it is adapted specifically for use as such, for example by the provision of markings and goals or nets. However, for exemption to apply, all three conditions bulleted above would have to be met. For example the hire of a football stadium to another football club with all the relevant facilities would not be exempt as it would not made to an individual taking part in sport (Prior to the UK leaving the EU, the UK relied on Regie Communale Autonome du Stade Luc Varenne C-55/14 to support this view)