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From January 2025, individuals and companies donating to approved sports bodies in Ireland may benefit from enhanced tax relief under updated rules introduced by the Finance Act 2024.
What Is An Approved Sports Body in Ireland?
Tax relief is available for donations made to approved sports bodies that are:
- Established solely to promote athletic or amateur sports.
- Hold a valid Games and Sports Exemption Numberand Tax Clearance Certificate.
- Have an approved projectcertified by the Department of Culture, Communications and Sport.
What Is an Approved Project?
Projects eligible for tax relief include:
- Construction or refurbishment of sports facilities.
- Purchase of land or permanent equipment.
- Improvements to playing surfaces.
- Repayment of loans used for these purposes.
Projects must be certified by the Minister and cannot exceed €40 million in total cost.
What Is a Relevant Donation?
To qualify for relief, a donation must:
- Be at least €250in a tax year.
- Be made solely to fund an approved project.
- Not result in any direct or indirect benefit to the donor.
- Not be conditional on the sports body acquiring property from the donor.
- Be made by a donor who is tax-resident in Ireland
How Is the Relief Claimed?
Donors now have two options:
- Claim the relief themselvesby deducting the donation from their total income.
- Surrender the reliefto the sports body, allowing it to claim the tax refund.
This applies to both self-assessed individuals and PAYE taxpayers. Companies can also claim a deduction as if the donation were a trading expense.
Timing of Claims
If the relief is surrendered to the sports body, it can only be claimed after 1 December in the year following the donation.
Important Notes
- Donations must be monetary (not goods or services).
- Fundraising activities like raffles or lotteries do not
- Receipts must be issued by the sports body to confirm the donation.
Should you require any further information on this subject please get in touch on ph. 01 849 88 00 or info@dbass.ie