Community Amateur Sports Club

The Community Amateur SportsClub ("CASC") scheme was introduced by the Finance Act in 2002 andenables local amateur sports clubs, subject to certain eligibilityconditions, to register with HMRC and to benefit from a number oftax reliefs including gift aid, an exemption from corporation taxwhere profits are less than £30,000 and non-domestic ratesrelief.

The conditions for becoming aCASC include the requirements that the club is open to the wholecommunity, is organised on an amateur basis and is established toprovide facilities for one or more eligible sports.

However, some of the rules oneligibility in the legislation are unclear and cause difficulty forclubs and HMRC on whether a club is entitled to relief. TheFinance Bill, which was published on 29 March, has given clarity tosome of these rules, and has introduced powers to allow theGovernment to change the rules on CASCs through secondarylegislation.

Now that the Finance Bill hasbeen published, the Government will consult on the proposals forthese 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 paymentsto players, before laying regulations after Royal Assent to theFinance Bill 2013. The Government expects that suchregulations will be laid in autumn of this year, giving moredetailed rules.

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.