8,000 clubs registered as CASCs worth £460 million

Over 8,000 clubs are now registered as a Community Amateur Sports Club (CASC) with HM Revenue and Customs (HMRC). The CASC scheme has been worth at least £460 million to registered clubs since the scheme began in 2002. HMRC have recently been highlighting the important role the CASC scheme plays in financially supporting registered community amateur sports clubs during these challenging economic times.

Benefits of CASC

The CASC scheme supports registered clubs by providing certain tax benefits such as business rates relief, gift aid, corporation tax exemptions on profits and inheritance tax benefits to clubs.

A CASC receives 80% mandatory business rates relief and is of particular importance to property owning clubs who are currently experiencing significant increases in rates bills from April this year.

One of the other main benefits of CASC registration is Gift Aid where the club can receive a 25% tax rebate on individual taxpayer donations. There have been cases where registered CASCs in cricket and rugby union have raised in the region of £25,000 in Gift Aid on donations to support the construction of club buildings.

In addition, CASCs can claim 25% back from HMRC on small cash or contactless card individual donations under the Gift Aid Small Donations Scheme, subject to a limit of £30 per individual donation and £2,000 per annum in refunds.

Individuals making lifetime gifts and bequests to a registered CASC get exemption from inheritance tax which can be valuable to the CASC.

Please see here for further information on the benefits of CASC registration.

Eligibility for CASC

There are certain qualifying conditions that have to be met in order for a club to register as a CASC with HMRC. Generally the club must be open to everyone in the community, promote and provide facilities for amateur eligible sport as well as be affordable to anyone who wants to be a member. The club must also be managed by fit and proper persons and have a suitable governing document. Please see here for further information on the eligibility for CASC registration.

Action

The Government, HMRC and the Sport and Recreation Alliance would like to see eligible clubs consider registering as a CASC in order to benefit from the associated benefits to ensure CASCs remain financially secure and able to provide amateur sports to the community into the future. Existing CASCs can consider how to make best use of the available benefits. Please see here for further information on the CASC scheme.