10 changes to the tax relief scheme available to sports clubs

HMRC’s new CASC rules came into effect on the 1st April. The 10 changes are listed below:

  • Clubs that charge a membership fee of more than £520 per year must offer an alternative membership scheme to accommodate those who can’t pay more.
  • Clubs charging an annual membership fee in excess of £31/week or £1612 per year will no longer be eligible.
  • At least 50% of the members must participate in a club’s sporting activities.
  • Clubs can pay players to play for the club. The total payable in any 1 year is £10,000 (including benefits). For the sake of clarity, this is a total amount to take care of all the players.
  • Clubs are now able to pay “reasonable” subsistence expenses for away events and can contribute to tours. HMRC have published guidelines in respect of these allowances.
  • The cap on income generated from members has been removed.
  • The cap on turnover that a club can generate from non-members is £100,000 p.a.
  • The level of annual trading income below which a club escapes Corporation Tax has been raised to £50,000. Previously it was £30000.
  • The level of annual income from property below which a club escapes Corporation Tax has been raised to £30,000. Previously it was £20000.
  • Companies will now be able to obtain tax relief on qualifying donations to a CASC under the Corporate Gift Aid Scheme.

There are about 6500 sports clubs that have registered as Community Amateur Sports Clubs with HMRC in order to benefit from a number of tax concessions. The new rules improve the tax benefits available and should encourage many more sports clubs to register with HMRC. According to Government estimates, there are over 40,000 sports clubs that could benefit from the various tax reliefs on offer.

To form your Limited by Guarantee CASC or to apply for CASC registration with HMRC go to our company formation page

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