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HM Treasury has published a summary of responses to the summer’s consultation on the changes to the eligibility rules for community amateur sports clubs (CASCs) and the associated tax reliefs.
The latest document sets out details of the new rules:
HM Treasury has published a summary of responses to the summer’s consultation on the changes to the eligibility rules for community amateur sports clubs (CASCs) and the associated tax reliefs.
The latest document sets out details of the new rules:
- Clubs charging up to £520 a year will be considered open to the community; those charging more than £1,612 will not be eligible.
- Clubs will be able to pay any number of players up to a total of £10,000 a year.
- Clubs will be able to pay reasonable subsistence expenses.
- At least 50% of a club’s members must be participating members: those who participate in the sport at least 12 times a year.
- Clubs will be able to generate unlimited income from members and up to £100,000 turnover from trading and miscellaneous transactions with non-members.
- The threshold on the exemption from corporation tax on trading income will be increased from £30,000 to £50,000.
- The threshold on the exemption from corporation tax on income from property will be increased from £20,000 to £30,000.
- All companies will be able to obtain tax relief on qualifying donations to a CASC under corporate gift aid.
The government hopes that the new regulations will allow clubs with more diverse trading activities to benefit from the CASC scheme by being able to set up trading subsidiaries.
Subsidiary companies will be able to donate their profits to the CASC and qualify for corporate gift aid if they wish to do so, enabling enable clubs with complex structures to continue to benefit from the CASC scheme while maintaining the focus on smaller community organisations.
Legislation to give effect to changes will be introduced in early 2014.
