Dáil Éireann Debate, Tuesday - 13 December 2022
234. Deputy Aodhán Ó Ríordáin asked the Minister for Finance if he will work with the Minister for Finance to ensure that joint ventures operating all weather pitches such as a company (details supplied) owned and operated on a not-for-profit basis by a soccer club and a GAA Club, will be eligible for the temporary business energy support scheme; and if he will make a statement on the matter. [61771/22]
View answer241. Deputy Aodhán Ó Ríordáin asked the Minister for Finance if joint ventures operating all weather pitches such as a company (details supplied) owned and operated on a not-for-profit basis by a soccer club and a GAA club, will be eligible for the temporary business energy support scheme; and if he will make a statement on the matter. [61770/22]
View answerI propose to take Questions Nos. 234 and 241 together.
Details of the new Temporary Business Energy Support Scheme (TBESS) are set out in Finance Bill 2022. The scheme provides support to qualifying businesses in respect of energy costs relating to the period from 1 September 2022 to 28 February 2023 and is available to tax compliant businesses carrying on a trade or profession the profits of which are chargeable to tax under Case I or Case II of Schedule D where they meet the eligibility criteria.
The TBESS operates by reference to bills for the metered supply of natural gas and electricity. It is available to eligible businesses whose average unit price of electricity or gas has increased by at least 50% for the relevant billing period between September 2022 and February 2023, as compared with their average unit gas or electricity price in for the corresponding reference period in the previous year. Where this threshold is met, payments will be made to qualifying businesses on the basis of 40% of the amount of the increase in eligible electricity or natural gas costs between the bill amount which is the subject of the claim and the bill amount in the corresponding reference period in the previous year.
Section 235 of the Taxes Consolidation Act 1997 provides an exemption from income tax or corporation tax for certain bodies established for the sole purpose of the promotion of athletic or amateur games or sports. The exemption applies to so much of their income that is applied solely for the purpose of promoting the game or sport in question.
Sporting bodies, including soccer clubs and GAA clubs, that carry on certain activities which would be chargeable to tax under Case I or II of Schedule D but for the section 235 exemption are included in the scheme. Electricity and gas costs which are attributable to those activities are eligible. For example, the short-term hiring of pitches on a commercial basis by a GAA or soccer club or the operation of a bar would usually be regarded as trading in nature and the energy costs associated with these activities may, where the scheme criteria are met, be eligible costs for the purposes of the TBESS.
Where a sporting body is engaged in different activities, only some of which would be regarded as activities of a trade or profession, then only so much of its electricity and gas costs which are attributable to the activities of the trade or profession may be eligible for support under the TBESS. This may require apportionment of energy costs between those activities that are trading or professional in nature and those that are not.
Where a company or not for profit organisation carries on activities such as the hiring of GAA or soccer pitches on a non-commercial basis, it is unlikely that that they would be regarded as carrying on a trade that is chargeable to tax, or would be chargeable to tax, but for the section 235 exemption. Such companies and not for profit organisations would not therefore be within the scope of TBESS and would not be eligible to apply for support under the scheme.
Revenue has published comprehensive guidelines on the operation of the scheme, which includes information on eligibility for the scheme and how claims may be made. The guidelines are available on the Revenue website, if you then go to Starting a businesss > Temporary Business Energy Support Scheme and that will provide all the relevant information on the scheme.
