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What You Need To Know

Frequently Asked Questions

Yes however your club must fall under the following categories:

  • Open to the whole community;
  • Organised on an amateur basis;
  • Its main purpose providing facilities for, and promoting participation in one or more eligible sports.

A club is open to the whole community if:

  • membership to the club is open without discrimination
  • facilities are open to members without discrimination, and
  • any fees are set at a level that does not pose a significant obstacle to membership or use of the club’s facilities.

These includes:

  • discrimination of ethnicity, nationality, sexual orientation, religion or beliefs
  • discrimination of sex, age or disability, except as a necessary consequence of the requirements of a particular sport.

It is expected that new regulations will specify:

  • clubs where membership and participation costs total £520 or less a year will be considered to be open to the whole community
  • clubs where membership costs (excluding participation costs) are above £1,612 a year will not be eligible
  • clubs where membership and participation costs total more than £520 a year must make special provisions for members on a low or modest income to participate for £520 or less.

A club is organised on an amateur basis if:

  • It is non-profit making
  • It provides for members and their guests only the ‘ordinary benefits’ of an amateur sports club
  • It does not exceed the limit on paid players
  • Its governing document requires any net assets on the dissolution of the club to be applied for approved sporting or charitable purposes.

A club is non-profit making if its governing document requires any surplus income or gains to be reinvested in the club. Surpluses or assets cannot be distributed to members or third parties. However, this does not prevent donations to other clubs that are registered as Community Amateur Sports Clubs.

Some of the rules as to what constitutes an ‘ordinary benefit’ will be amended in 2014.The ordinary benefits of an amateur sports club include:

  • stipulation of sporting facilities
  • sensible provision and maintenance of club-owned sports equipment
  • stipulation of suitably qualified coaches
  • stipulation, or reimbursement of the costs, of coaching courses
  • repayment of certain travel expenses incurred by players and officials travelling to away matches
  • sale or supply of food or drink as a social adjunct to the sporting purposes of the club.

A club is allowed to:

  • come in into agreements with members for the supply to the club of goods or services or
  • employ and pay remuneration to staffs who are club members.

CASC could pay members for services such as coaching or grounds maintenance but would not, for example, normally pay members to play. However under new regulations clubs will be allowed to pay a maximum of £10,000 a year in total to players to play for the club.

Eligible sports are defined in the legislation by reference to the Sports Council’s list of recognised activities. View the latest list here.

We are Asked About

A New Income Condition

All CASCs must meet a new income circumstance which aims to ensure that CASCs are mainly sports clubs rather than mainly commercial clubs with sports activities. The income condition will apply to the turnover received from broadly commercial transactions with non-members, where the club is offering a commercial service or supply, for example sales of food and drink. The maximum amount of turnover that a club may receive under the income condition will be £100,000 a year, excluding VAT.

Clubs will be able to generate unlimited income from transactions with their members. Investment income and donations received will also be excluded from the income condition.

CASCs can reclaim basic rate tax on Gift Aid donations made to them by individuals but CASC subscriptions are not eligible as Gift Aid payments.

CASCs are treated as companies for tax purposes. Therefore their profits may be chargeable to corporation tax.

CASCs can claim appropriate tax reliefs: the following examples were correct at the time of writing but are under regular review and will need to be checked against HMRC guidelines

  • exemption from Corporation Tax on profits from trading where the turnover of the trade is less than £30,000 (this will be increased to £50,000)
  • exemption from Corporation Tax under Schedule A on income from property where the gross income is less than £20,000 (this will be increased to £30,000)
  • exemption from Corporation Tax on interest received
  • exemption from Corporation Tax on chargeable gains.

It should be noted that if trading turnover exceeds £30,000 (£50,000), all the trading profit is assessable to corporation tax.

 Example

 

A CASC runs a trade with turnover of £40,000 and profit of £6,000. Because the turnover exceeds the £30,000 limit the profit is taxable. The CASC also has gross rental income of £12,000. The gross rental income is below the exemption limit and is not taxable.

Where a CASC receives a tax return, relief can be claimed in the return. However most clubs do not receive a tax return each year. If the club has had tax deducted from its income or if it has received Gift Aid payments, it can claim a repayment from HMRC.

CASCs in England and Wales get the same relief that would be available to a charity (80% mandatory relief) where the CASC property is wholly or mainly used for the purposes of that club. For CASCs in Scotland, the Scottish Executive has agreed voluntary relief with local authorities for the same amount.

CASCs in England and Wales get the same relief that would be available to a charity (80% mandatory relief) where the CASC property is wholly or mainly used for the purposes of that club. For CASCs in Scotland, the Scottish Executive has agreed voluntary relief with local authorities for the same amount.

  • Individuals can make gifts to CASCs using the Gift Aid scheme.
  • Businesses giving goods or equipment that they make, sell or use get relief for their gifts.
  • Corporate Gift Aid is to be introduced from April 2014.
  • Gifts of chargeable assets to CASCs are treated as giving rise to neither a gain nor a loss for capital gains purposes.

Recognised Sports