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Community Amateur Sports Clubs – new benefits, but new conditions since 2015

Article posted: 1st February 2016

The CASC Scheme was originally introduced in 2002 and enables amateur sports clubs to register with HMRC and benefit from a preferential tax status. The 2015 Regulations made changes to the CASC Scheme brought about as a result of consultation back in 2013. HMRC has since published its new CASC Detailed Guidance which has been updated to reflect the changes brought about by the new Regulations.

 The key changes from April 2015 are:

  1. To qualify (or continue to qualify) as a CASC, membership costs cannot exceed £1,612 per year (or £31 per week). There is also a new rule whereby if the “costs associated with membership” (generally speaking any specific costs for participating in a sport such as match fees, ground hire etc.) exceed £520 p.a. provisions have to be put in place to assist any members who are unable to afford this.
  2. The trading income threshholds have been changed in terms of whether a club qualifies as a CASC. There is no longer a limit on the trading income the club can generate from its members. However, there is a limit of £100,000 p.a. on non-member trading income and property income.
  3. In terms of the practical changes once in the scheme, the tax exemption limits have been increased. Trading profits are now exempt where turnover does not exceed £50k p.a. (was £30K) and the property income exempt amount is now £30k p.a. (was £20k).

A CASC can now, under the new rules, make payments to players provided that the total of those payments do not exceed £10,000 per annum.

 

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