Tax relief on donations to certain sports bodies
What is a relevant donation?
A donation will qualify under this tax relief if it is:
- a payment, in the form of money, of at least €250 in a tax year
- for the sole purpose of funding an approved project
- not otherwise deductible by a self-assessed individual in calculating their trade profits
- not otherwise deductible by a company as an expense in calculating their profits
- not repayable.
As a donor, you must not receive any benefit, either directly or indirectly, as a result of the donation. A donation cannot be conditional on the sports body buying a property from you. This also applies to any person connected to you.
Donations made by individuals under the Pay As You Earn (PAYE) system
If you pay tax under the PAYE system, and wish to make a qualifying donation, you must:
- be resident in the State for the year in which you make the donation
- have given an appropriate certificate to the approved sports body you are donating to
- have paid the tax referred to in the appropriate certificate
- not claim a repayment of that same tax.
When an approved project becomes fully funded and the approved sports body continues to receive donations in respect of that project:
• the approved sports body must not seek further tax relief on donations
• self-assessed individuals and companies cannot claim tax relief on the donations.
Next: What records must be kept by an approved sports body?