The Community Amateur Sports Club Scheme

Despite valiant efforts from volunteers, sports clubs have notoriously suffered from a lack of money and adequate facilities.  In 2001, in an effort to address this, the government passed new legislation which would allow amateur sports clubs to take advantage of valuable tax relief’s.  Clubs that provide facilities and promote participation in eligible sports can save money by registering as a community amateur sports club (CASC).

The community amateur sports club (CASC) scheme came into operation in April 1992 and is run by the Inland Revenue Sports Clubs Department.  It seeks to recognise the good community work that many sports clubs do by giving them many of the benefits that derive from having charitable status but without the hard work and complexity of enrolling as a charity and complying with charitable procedures.

Recent changes mean that:

  • Clubs can reduce their rates bills by at least 80%
  • Clubs’ income from interest and capital gains are tax-free.  Exemptions from Corporation Tax apply on trading income of up to £30,000 and income from property of up to £20,000.

Around 3,000 clubs have registered with the CASC scheme (553 clubs in the South East), although potentially 30,000 clubs are eligible to take advantage of the scheme.  

The main benefits are:

  • Individuals including members can give cash to the club using Gift Aid, which will provide –]
  • A tax relief for the club of £28 for every £100 donated
  • Income tax relief on the gift resulting in a tax repayment for a higher rate taxpayer of £23 for every £100 given –

Since 1st April 2004 registered CASC’s get mandatory rate relief of 80%.  This can be of substantial value to clubs that own or lease their own facilities or land.  Some clubs have been able to secure the remaining 20% as discretionary relief.

The main conditions for registration are:

  • Membership must be open to the whole community.
  • The club’s facilities must be available to all members without discrimination.
  • The club’s rules/constitution must prevent the distribution of profits to members i.e. funds must be reinvested in the club.
  • Club members cannot be paid for playing, although they can be paid for providing other services to the club such as coaching.
  • Membership categories and fees must be reasonable and should not be a barrier to open membership.

To register clubs need to complete two simple forms and submit a set of accounts and governing documents.  If these documents are not compliant with the CASC system, the Inland Revenue will advise clubs what changes need to be made.

Before applying clubs can ascertain if they meet the criteria by looking at the Inland Revenue’s guidance.  The Central Council for Physical Recreation (CCPR) has a sample CASC constitution and key clauses on their website at www.ccpr.org.uk/dyncat.cfm?catid=13897

Cash benefits are not available until clubs register.  Club Committees should be considering CASC registration now.

A Taxing Problem - Richard Baldwin reviews the benefits of the scheme and assesses the current situation.

Further Information and Useful Websites

Inland Revenue Charities
Sports Club Unit
St Johns House
Merton Road, Bootle
Merseyside L69 9BB

tel 0845 3020203 (option 3)
www.inlandrevenue.gov.uk/casc/

DCMS
www.culture.gov.uk/sport/community_sport/

Deloitte
www.sportsconsulting.co.uk

CCPR
www.ccpr.org.uk/dyncat.cfm?catid=13897

Bates Wells & Braithwaite
www.bateswells.co.uk/sport.htm

Sport England
www.sportengland.org.uk  

Information provide by: Growing Community Sport, The Community Amateur Sports Club Scheme, Department for Culture, Media and Sport (2004)