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HMRC internal manual

Business Income Manual

Meaning of trade: mutual trading and members clubs: community amateur sports clubs: relief available on a claim

You should refer any application to be accepted as a community amateur sports club (CASCs) to Specialist PT (Charities).

CASCs are members clubs so the income from the members is not ‘trading’ see BIM24010. Many CASCs trade with non-members and relief can be claimed. Where a CASC (see BIM24335 for definition) is registered throughout an accounting period the profits from trading are exempted where the receipts (before deduction of expenses) do not exceed £50,000 (£30,000 before 1 April 2015). There is a proportionate reduction in the exemption limit for shorter accounting periods.

Where a club is registered for only part of an accounting period it is treated as having two separate accounting periods and the exemption limit is again proportionately reduced.

There is a similar exemption for property income but the receipts (before deduction of expenses) should not exceed £30,000 (£20,000 before 1 April 2015)

Once Specialist PT (Charities) registers a club as a CASC it will take over responsibility for the club’s corporation tax returns so you will not need to deal with claims for the CASC reliefs.