Community Amateur Sports Clubs (CASC) and Tax Relief

Introduction

Community Amateur Sports Clubs (CASCs) can access valuable tax reliefs that help local sports clubs reinvest more money into facilities and participation. By registering with HMRC, your club can benefit from tax exemptions on qualifying income, Gift Aid repayments on donations, and business rates relief—but you'll need to meet specific eligibility criteria and maintain them throughout your registration.

What is a CASC?

The CASC scheme launched in April 2002 to support local amateur sports clubs across the UK. Registration gives your club access to tax reliefs similar to those available to charities, whilst avoiding regulation by the Charity Commission. However, you must choose: you cannot register as both a CASC and a charity for tax purposes. If you later decide to become a charity, you would need to close the CASC and transfer its assets to a new charitable organisation.

Eligibility requirements

To register as a CASC, your club must be based in the UK and provide facilities for eligible sports recognised by Sport England. You must also meet four key conditions:

Formal constitution: You need a governing document (sometimes called memorandum and articles of association) that sets out your club's purpose and structure. This document must explain how you meet the CASC criteria and state that any remaining assets after closure will only go to another registered CASC, charity, or related community sport.

Open to the whole community: Your club must welcome people of all ethnicities, nationalities, sexual orientations, religions, beliefs, sexes, ages, and abilities (except where a certain level of physical ability is needed for the sport itself). Membership fees cannot exceed £31 per week, and if you charge more than £10 per week, you must provide support such as discounts for those who cannot afford full fees. You can set different rates for juniors or students, provided you're not discriminating against particular groups.

Amateur organisation: Your club must not operate for profit unless any surplus is reinvested solely in promoting participation and providing facilities for eligible sports. You cannot pay more than £10,000 in total to all players in a year. Benefits should be limited to those normally associated with amateur sports clubs, such as equipment use, coaching, and post-match refreshments. Player expenses for matches and tours are only allowed where players actively participate in and promote the club's sport.

Fit and proper management: Your club must be managed by appropriate individuals who meet HMRC's standards.

How to register

Registration is done by completing form CASC (A1). You must be the club's authorised official or responsible person to submit the application. Once submitted, you cannot withdraw your application.

You'll need to provide:

• Details of at least two other officials, including National Insurance numbers and telephone numbers
• Club name and address
• Number of members or subscriptions
• Company or VAT references (if applicable)
• Bank details
• Details of the club's income

Within 30 days of applying, you must send copies of:

• Accounts from the last 12 months
• Bank statements from the last 3 months
• Your club's rules or articles of association

Documents not in English must be accompanied by a translation. You should receive a response within three weeks. If your application is refused, HMRC will explain why and what needs changing. You can appeal in writing within 30 days of their decision, and if still unsatisfied, you have a further 30 days to appeal to the tax tribunal.

Tax reliefs available

Once registered, your CASC doesn't pay tax on income used for qualifying purposes (promoting participation and providing facilities for eligible sports). This covers:

• Bank interest
• Gift Aid donations (including from trading companies owned by your CASC)
• Capital gains from selling or disposing of assets
• Trading profits if turnover is less than £50,000 per year (this increased from £30,000 on 1 April 2015)
• Property rental income up to £30,000 per year (increased from £20,000 on 1 April 2015)

For income from members with full voting rights, you also don't pay tax on:

• Membership fees (though you cannot claim Gift Aid on these)
• Profits from selling food and drink related to sporting activities, such as a members' bar

When you must pay tax

You must pay tax on:

• Money not used for qualifying purposes
• Property rental income over £30,000 per year
• Trading profits when turnover exceeds £50,000 per year

When your trading or rental income exceeds these thresholds, you pay tax on the full amount after deducting allowable expenses.

You must also pay VAT if your taxable turnover exceeds £90,000, though you may be exempt for fundraising and sporting activities. You can voluntarily register for VAT below this threshold to reclaim VAT on business supplies.

Business rates are payable, but you can apply for relief of up to 80%.

If your CASC needs to pay Corporation Tax, you must file a Company Tax Return and include form CT600E when claiming relief on any income or gains. If you have no tax to pay, you only need to complete a return if HMRC requests one. Limited companies must also send annual accounts to Companies House.

Reclaiming tax

You can use Charities Online to reclaim tax deducted from Gift Aid donations and bank interest. You must keep records of all transactions for which you want to claim relief (including Gift Aid declarations) for six years after the end of the accounting period they relate to.

Maintaining your CASC status

You must report changes to HMRC using form ChV1, including:

• Contact details
• Authorised officials or responsible persons
• Bank or building society account details
• Any changes affecting your eligibility

Allow at least 30 days for HMRC to register your changes. If you fail to meet eligibility requirements, HMRC can cancel your registration, potentially with backdated effect. This would result in losing tax exemptions from the deregistration date and possibly owing Corporation Tax on assets taken out of the club.

Closing your CASC

Only HMRC can deregister your CASC. If members vote to close the club, you must notify HMRC and follow the rules in your governing document. Any remaining assets must only be used for related community sport (as decided by your sport's governing body), another registered CASC, or a charity. Otherwise, your CASC would have to pay Corporation Tax on those assets.

Sources

• Register as a community amateur sports club (CASC)
• Running a community amateur sports club (CASC)
• Tax relief for community amateur sports clubs (CASCs)
• Community Amateur Sports Clubs detailed guidance notes

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.