Community Amateur Sports Clubs

At AHACCOUNTANTS, we consider the rules surrounding Community Amateur Sports Clubs (CASCs) and their implications. If your club is in the Nottingham area, we can provide guidance on the CASC rules.

Local amateur sports clubs may wish to register with HMRC as CASCs to benefit from various tax reliefs, including Gift Aid. This factsheet explores the tax benefits and registration requirements that clubs must meet.

What Kind of Club Can Register?

To register as a CASC, a club must broadly meet the following criteria:

• Be open to the whole community.
• Be organised on an amateur basis.
• Have as its main purpose the provision of facilities for and promoting participation in one or more eligible sports.
• Not exceed the income limit.
• Meet the management condition.
• Meet the location condition.

A club must demonstrate that it meets these conditions and has a suitable governing document outlining its purpose and structure.

Open to the Whole Community

A club is considered open to the whole community if:

• Membership is open without discrimination.
• Facilities are available to members without discrimination.
• Fees are set at a level that does not pose a significant obstacle to membership or use of the club’s facilities.

Discrimination includes:

• Ethnicity, nationality, sexual orientation, religion or beliefs.
• Sex, age, or disability, unless necessitated by the sport’s requirements.

Costs associated with membership and participation:

• Clubs where total costs are £520 or less a year are generally considered open to the community.
• Clubs with membership costs above £1,612 a year are ineligible.
• Clubs with costs over £520 must provide provisions for low-income members to participate for £520 or less.

Organised on an Amateur Basis

A club is organised on an amateur basis if it:

• Is non-profit making.
• Provides members and guests only with the “ordinary benefits” of an amateur sports club.
• Does not exceed the limit on paid players.
• Requires net assets on dissolution to be applied for approved sporting or charitable purposes.

Non-profit making means any surplus income must be reinvested in the club. Distributions of assets cannot be made to members or third parties, but donations to other CASCs are allowed.

Ordinary benefits include:

• Sporting facilities and maintenance of equipment.
• Qualified coaches and reimbursement for coaching course costs.
• Insurance cover, medical treatment, reasonable travel expenses, and post-match refreshments.

Clubs can pay members for services (like coaching) at competitive rates, but total payments to players cannot exceed £10,000 a year.

Eligible Sports

Only sports on the list maintained by the National Sports Council qualify.

Income Limit Condition

CASC income must not exceed £100,000 annually from trading with non-members (like food sales) or property income. The limit decreases proportionally for shorter accounting periods. Clubs can generate unlimited income from transactions with members.

Management and Location Conditions

Management is assessed on whether managers are fit and proper persons, ensuring funds and tax reliefs are used appropriately. The location condition applies only to UK clubs since March 15, 2023.

Tax Reliefs for Registered CASCs

CASCs can reclaim basic rate tax on Gift Aid donations but not on subscriptions. They are treated as companies for tax purposes, with potential tax reliefs including:

• Exemption from Corporation Tax on UK trading profits under £50,000.
• Exemption on UK property income under £30,000.
• Exemption on interest received and chargeable gains.

CASCs must use all income for qualifying purposes.

Claiming Tax Reliefs

CASCs can claim tax relief in their Company Tax return or request repayments from HMRC for tax deducted from income or Gift Aid payments.

Non-Domestic Rates Relief

CASCs in England and Wales receive 80% relief for properties used for charitable purposes. In Scotland, CASCs can apply for 80% relief if the property is primarily used by that club or another CASC.

Relief for Donors

Individuals can make Gift Aid donations to CASCs, and businesses donating goods or equipment receive relief. Gifts of chargeable assets are treated as neither gains nor losses for capital gains purposes.