Following the issuing of a consultation document by Her Majesty's Treasury in 2001, CCPR who had campaigned for tax relief for clubs since 1999, provided HMT with two amendments to help local sports clubs:
- Following a Charity Commission policy change, sports clubs could register as charities; and
- Sports clubs could register as a Community Amateur Sport Club under a tax scheme.
Both amendments were implemented.
Key dates
In 2002 the CASC scheme was established in Schedule 18 of the Finance Act with effect from April 2002. CASCs were granted the opportunity to claim Gift Aid on donations meaning up to an additional £28 for every £100 donated.
The 2003 Local Government Act enabled registered CASCs to claim 80 percent mandatory rate relief on business rates providing CASCs “parity with charity” from April 2004. Local authorities can grant an additional 20 percent rate relief to clubs at their discretion.
In 2004, the threshold for exemption from corporation tax on trading and rental income were raised.
The Central Council of Physical Recreation, as part of the CASC Development Forum, continues to campaign for improvements to the scheme, which is why it is so important for clubs to register with cascinfo.co.uk to ensure your voice is heard in this process. Register here
However, the options for sports clubs go beyond CASC alone and the Deloitte document 'Community Amateur Sports Clubs - the tax options' outlines the alternative of charitable status.
