Tax Benefits for Your Club - CASC & Gift Aid

Sports clubs play a valuable role in their communities. The CASC scheme recognises this important role by distinguishing between clubs and businesses for rates and tax purposes, ensuring money is kept in sports clubs. Both property and non-property owning clubs can significantly benefit from the scheme.

The key benefits of CASC registration include:

  • 80% mandatory business rate relief. Local authorities can offer up to 100% relief to clubs at their discretion.
  • The ability to raise funds from individuals under Gift Aid. A registered CASC can reclaim up to £28 in tax for every £100 donated, though at the moment this does not apply to all types of donations.
  • CASCs are exempt from Corporation Tax on profits derived from trading activities if their trading income is under £30,00 pa.
  • Profits derived from property income are also exempt for CASCs if gross property income is under £20,000 pa, of particular relevance following the abolition of the nil rate band.
  • CASCs whose income does not exceed these thresholds will no longer be required to complete an annual Corporation Tax return. 

Relief on business rates alone are estimated by the Chancellor of the Exchequer to be worth £2,000 per year. Whilst this only benefits facility owning clubs, non-facility owning clubs can still significantly benefit from Gift Aid and exemption from Corporation Tax.

To become a Community Amateur Sports Club clubs must:

  • be a recognised sport by the sports council
  • not discriminate in any way in their membership policies and be wholly open to all sections of the community
  • have a core purpose in the promotion of amateur sports participation (ABAE Am-Pro clubs are not eligible to register for CASC status.)
  • be non-profit making, and re-invest any profits in the sports club
  • stipulate that in the event of being wound up, any remaining assets be distributed to either the sports governing body for use in community sport, another CASC or charity.
  • These criteria should be included in your club's constitution. Model clauses for inclusion in your club's constitution are available for reference and adoption if required. You can also download a CASC compliant Constitution that includes the causes here. 

The most important thing to remember is that once you have registered as a CASC you will always remain a CASC.

Applying to become a registered CASC is a simple process. Clubs are required to submit a completed application form to HMRC with a copy of the club's constitution adhering to the criteria set out in the guidance notes.

Further information can be found at www.cascinfo.co.uk or http://www.hmrc.gov.uk/CASC/casc_guidance.htm