Community Amateur Sports Club

The Community Amateur Sports Club ("CASC") scheme was introduced by the Finance Act in 2002 and enables local amateur sports clubs, subject to certain eligibility conditions, to register with HMRC and to benefit from a number of tax reliefs including gift aid, an exemption from corporation tax where profits are less than £30,000 and non-domestic rates relief.

The conditions for becoming a CASC include the requirements that the club is open to the whole community, is organised on an amateur basis and is established to provide facilities for one or more eligible sports.

However, some of the rules on eligibility in the legislation are unclear and cause difficulty for clubs and HMRC on whether a club is entitled to relief.  The Finance Bill, which was published on 29 March, has given clarity to some of these rules, and has introduced powers to allow the Government to change the rules on CASCs through secondary legislation.

Now that the Finance Bill has been published, the Government will consult on the proposals for these rules and HMRC will publish a consultation document.  The Government will consider a range of issues including fees, allowable income, travel expenses and permitting limited payments to players, before laying regulations after Royal Assent to the Finance Bill 2013.  The Government expects that such regulations will be laid in autumn of this year, giving more detailed rules.

Posted on: 16/04/2013

This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.

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