Kevin Reed, Accountancy Age, Friday 24 September 2010 at 11:03:00

Arsenal Football Club achieves 5m net tax credit after HMRC negotiations,compared to a 10m charge a year earlier

ArsenalFootball Club has achieved a 15m swing in its favour on its taxbill.

Releasing its full year results for 2009/2010, the club revealed that it had"invested significant time and resource" resolving a number of tax issues withHM Revenue& Customs.

The adjustments in bringing the group's tax affairs up to date saw a net taxcredit of 5m for the period, compared to a charge of 10.3m a year earlier.

Within the credit, the calculation of corporation tax payable includes theongoing benefit of changes to taxable profits for the rollover of gains onplayer sales, and for its redevelopment of its former ground Highbury intoflats.

Arsenal said that the adjustment relating to the redevelopment reflects thetransfer of the stadium from fixed assets to trading stock in 2006 at its thenmarket value, and the roll-over of the capital gain which arose on thattransaction.

Further reading:

HMRCvs five-a-side industry on VAT issues

Exclusive:UK's largest football clubs owe 4m in deferred tax