FAQ - Community Sports Clubs – Partial Exemption
Last updated at 16:55 on 11/02/2016
The information provided here does not purport to constitute a definitive interpretation of the Valuation Acts 2001 - 2015
Who can benefit from the partial exemption?
The partial exemption applies to Clubs where buildings or part of buildings are occupied and are used exclusively for “community sport” on a not-for-profit basis. The club must be registered under the Registration of Clubs (Ireland) Act 1904. The term “community sport” is defined in the legislation and is set out in Schedule 4, paragraph 4B of the 2001 Act.
Where does the partial exemption come from?
The Valuation (Amendment) Act 2015 introduced a new provision to the Valuation Act 2001 which gives rise to the partial exemption. This is now contained in Schedule 4, paragraph 4B of the 2001 Act.
What is the effect of the exemption?
Under the Valuation Act 2001, the entire premises occupied by a sports club registered under the Registration of Clubs (Ireland) Act 1904 was liable for Commercial Rates. The amendment changes this by, in general, confining the liability for Commercial Rates to those parts of the club premises used by the club for the generation of income.
Is it still possible for my club apply for the partial exemption?
Yes. You can download and complete the application form (Form R2) from the Revision Forms section of this website. The application must be signed by a club official (Chairperson, Deputy Chairperson, Treasurer or Secretary) or Agent, in the presence of a witness. Post, or deliver it, and the accompanying documents to "Sports Club Applications, Valuation Office, Block 2, Irish Life Centre, Abbey Street Lower, Dublin 1, D01 E9X0".
Is there a fee for the application?
There is no fee for the application.
Which parts of a registered club premises are now exempt from rates?
Under the Valuation Act 2001, all outdoor playing facilities were already exempt.
The new provision, that came into effect on the 8th June 2015 widens the exemption to include parts of a club premises that are used exclusively for community sport.Ordinarily the following facilities are likely to be exempt:
- Meeting Rooms
- Machinery Sheds
- Equipment Storage Areas
- Other Storage Areas
- Administrative Offices
- Changing/Dressing Rooms
- Trophy/Museum Room
However, where any of the facilities of the club are used directly, or indirectly:
- in the regular, or occasional sale, or consumption of alcohol, or
- for the generation of income for the club, or other persons,
such facilities shall be rateable unless the income is received exclusively from:
- organisations using the facility for community purposes, or
- participants in community sport using the facility for community sport purposes.
Which parts of a club premises are liable for rates?
The following parts of the premises of a club which is registered under the Registration of Clubs (Ireland Act) 1904 remain rateable:
Ordinarily, the parts of the premises which would be rateable would include the following examples:
- Any part of the premises used for the sale, or consumption of alcohol on a regular, or occasional basis.
- Any part of the premises used directly, or indirectly in the generation of income for the club, or other persons, other than income derived from:
- club membership fees
- community organisations using the building, or part of the building for community purposes
- participants in community sport for the use of the building, or part of the building for the purposes of community sport.
- A shop or similar area reserved for retail or commercial activity
- Areas used in conjunction with the storage, preparation, sale or consumption of food such as kitchens, dining areas, function rooms and toilets.
- Areas used on a regular, or occasional basis for the sale, or consumption of alcohol such as bar areas, function rooms, halls and toilets.
- Areas used in connection with the storage of alcohol or other produce for sale on the premises.
- Areas such as meeting rooms, halls and function rooms available for hire/rent except where community organisations exclusively hire/rent that part of the facility for community purposes.
- Facilities such as changing/dressing rooms, indoor training facilities (gymnasia, weights rooms etc.) and toilets used directly or indirectly to generate income from individuals who are not club members
What about Function rooms?
Function rooms used for the sale or consumption of alcohol on a regular or occasional basis are liable for rates. Also, function rooms used for any other “for profit” purpose, including sale of food, are generally liable for rates. However, an exception to this arises if the income comes from a community organisation using the facility for community purposes.
How will the partial exemption of a Community Sports Clubhouse be calculated?
The total floor area of a clubhouse occupied by a club registered under the Registration of Clubs (Ireland) Act 1904 will be calculated on a gross external floor area basis. Those parts of the clubhouse used exclusively for community sport purposes will also be calculated on a gross external area basis. The valuation will then be reduced on a pro rata basis to allow for the gross external floor area used for community sport purposes. The valuation on the remainder of the clubhouse will continue to be liable for Commercial Rates.
Who do I contact for further information?
If you have any questions in relation to this partial exemption, or the completion of Form R2, please contact the Valuation Office Helpline between 9.30am and 5.30pm Monday to Friday (excluding public holidays) at 01 8171033 or by e-mail to email@example.com