- Is your community sports club looking to be more efficient and
effective and needs to save money?
- Would paying significantly reduced business rates or claiming
25p for every pound of Gift Aid donations given to your club help
your club’s finances?
- Is your club looking to relocate through sale of current
facilities and facing potential large capital gains tax bill?
- Would exemption of the capital gains tax allow the club to
reinvest more into the club and its future development?
If the answers to some or all of the above questions are YES –
then the following will be of considerable interest to your club in
these difficult economic times.
The Government’s Community Amateur Sports Club scheme
(
CASC
) allows
you to do just this.
Registering as a Community Amateur Sports Club can provide a
range of financial benefits for community sports clubs.
More than 6,118 such clubs are registered, claiming an
estimated total cash benefit of at least £109.2m as of 31 December
2011. Cricket, bowls, tennis, football, rugby union and golf clubs
lead the way.
Sport England and national governing bodies (
NGB
) recommend that clubs
review the benefits of
CASC
registration and review
this alongside any NGB specific guidance.
It should be noted that whilst many clubs will and do benefit
from CASC registration, it is not right for every club and the
decision to register should not be taken lightly.
A guide to CASC can be found on the CASC Information website.
CASC registration benefits
- Both property (asset) and non-property (non asset) owning clubs
can significantly benefit from the scheme. The key benefits of CASC
registration include:
- 80% mandatory relief on business rates. Local authorities can
offer an additional 20% relief to community sports clubs but it is
entirely at their discretion.
- The ability to raise funds from individual donations under Gift
Aid. A registered
CASC
can reclaim up to 25p
in tax for every £1 donated
- Tax free income from interest and capital gains (used for
qualifying purposes)
CASCs
are exempt from
Corporation Tax on profits derived from trading activities if their
trading income is under £30,000 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
CASC
case
studies contain practical examples of how community sports clubs
just like yours have benefited from
CASC
registration.
To become a Community Amateur Sports Club, clubs must:
- 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
- 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
- Be a recognised sport by the home
country sports councils
CASC
case
studies
How to become a
CASC
?
To find out more about becoming a Community Amateur Sports Club
and benefit from the savings available visit the CASC website
This website provides the information required to make a
decision on CASC registration for your club
Becoming a CASC is relatively straightforward for most community
sports clubs. Just follow these three simple steps:
- Read and discuss the guidance notes from HM Revenue &
Customs (
HMRC
)
and decide if CASC registration is the right choice for your
club
- Look at your sports club’s constitution.
- Is this an accurate reflection of the club’s policies and does
it fulfill the criteria set out in the guidance notes? If not, you
will need to consider making some changes.
If you are happy that CASC registration is right for your club
and that your constitution is appropriate, complete and submit the
HMRC application form
Other guidance and useful contacts
HMRC charities helpline
For more information you can contact the Charities Helpline on
Tel 0845 302 0203 (open from 8.00 am to 5.00 pm, Monday to Friday).
Select option 4 for
CASCs
or visit the
HMRC dedicated
web pages to CASCs.
Workshops
A
Running Sports workshop will explain the process and benefits
of becoming a
CASC
, and by the end of the
workshop, clubs will be able to:
- Recognise and explain to other volunteers the advantages of
becoming a CASC
- Describe to volunteers the processes required to apply for CASC
status
- List the areas of development in order to apply for CASC
status.
Gift Aid Small Donations (GASDs)
The Small Charitable Donations received Royal
Assent on 19 December 2012, becoming the Small Charitable Donations
Act 2012.
GASDS allows eligible charities and CASCs to
claim Gift Aid style top-up payments on small cash donations. Clubs
can receive a top-up payment of 25p in the £1 from the Government
on small cash donations of up to £20 (maximum of £5,000 per year),
without the need for the club to obtain declarations as is required
to claim Gift Aid. HMRC will be publishing the guidance
accompanying the scheme for consultation in early 2013. The scheme
is due to start in April 2013.
More info can be found on the HMRC website.