Community amateur sports clubs (CASCs) get some tax reliefs.
The tax rules for CASCs changed on 1 April 2015.
You may be able to claim relief on money your CASC uses to promote participation in and provide facilities for eligible sports. These are called ‘qualifying purposes’.
To benefit you need to register as a CASC.
What CASCs don’t pay tax on
If the money you receive is used for qualifying purposes, you don’t pay tax on:
- bank interest
- Gift Aid donations, including donations made by a trading company that’s owned by your CASC (you can claim the tax back)
- capital gains (profit from selling or disposing of an asset)
- trading profits if your turnover is less than £50,000 a year (£30,000 before 1 April 2015)
- income of up to £30,000 a year from renting out property (£20,000 before 1 April 2015)
If the money comes from members with full voting rights, you also won’t pay tax on:
- income from membership fees
- profits from selling food and drink relating to the club’s sporting activities, eg a members bar
You can’t claim Gift Aid on membership fees.
What CASCs do pay tax on
You must pay tax on money that isn’t used for qualifying purposes.
You must also pay:
- VAT - although you may be exempt for fundraising and sporting activities
- tax on income of more than £30,000 a year from renting out property
- business rates, but you can apply for relief of up to 80%
- tax on trading profits if the turnover is more than £50,000 a year
You’ll have to pay tax on the full amount, after deducting any allowable expenses, if your trading or rental income is more than the relief limits.
You must complete a tax return if your CASC needs to pay tax.
If HM Revenue and Customs (HMRC) asks for a tax return you must complete one - even if there’s no tax to pay.
You can use Charities Online to claim back tax that’s been deducted, eg on:
- Gift Aid donations
- bank interest
You must keep records of all transactions you want to claim tax relief on (including Gift Aid declarations) for 6 years after the end of the accounting period they relate to.