New Rules for Community Amateur Sports Clubs (CASCs)
The Community Amateur Sports Club (CASC) scheme has been in existence since 2002. The founding principle of the scheme was to provide financial support to amateur members clubs, to help them be able to provide facilities for and encourage participation in sports across the whole of the community. Unfortunately, these rules were considered by many to be overly complex and difficult to apply, which deterred many clubs from joining. The government therefore decided to simplify the rules and improve the reliefs available to make it more beneficial and encourage more clubs to join.
The new rules means that more clubs can join and benefit from the reliefs available, and it should be easier to ensure they meet the eligibility criteria. Because the rules have changed however, it will mean that clubs currently in the scheme will need to check the new criteria to ensure they are still eligible, and if not they may need to make some changes.
What clubs are eligible
Any amateur sports club is eligible, so long as it meets the following criteria:
- Membership fees must be no more than £1,612 per year, and if membership fees are more than £520 per year (£10 per week) then the club must put in place special provisions for potential members on low or modest incomes to ensure they can afford to be members.
- Trading receipts from non-members must be no more than £100,000 per annum
- At least 50% of members must be participating members, which the rules state means that they must participate at least 12 times per year.
What benefits do CASCs get?
CASCs benefit from a number of reliefs and benefits including:
- Being able to pay players up to £10,000 a year in total (this is per club, and not per player however)
- Exemption from corporation tax on trading income from non-members of up to £50,000 (up from £30,000 under the old rules), and income from property of up to £30,000 (up from £20,000)
- Can claim gift aid relief on all qualifying donations under the corporate gift aid scheme.
- 80% Business Rates Relief (and up to 100% at the discretion of the local authority)
- Exemption from capital gains tax
If you are an amateur sports club, then it could be well worth considering joining the scheme, or if you are already in the scheme it is important to check you still meet the eligibility criteria.
For more information or to discuss your club’s tax position, contact 01772 821021.