CASC Dissolution regulations
If your club is dissolved for any reason once it is registered as a CASC, all the club’s assets have to be applied for approved sporting or charitable purposes, and this must be made clear in your club’s governing document.
In practice this means that your governing document must make provision for the distribution of assets to one of the following:
- The Governing body of your CASC’s sport for use in related community sport
- Another registered CASC
- A UK charity
Unused grant payments
If your club has unused grant payments at the time of dissolution you can, if required in the terms of the grant, repay the grant provider before distribution of the balance of assets.
De-registration
There is no provision in CASC legislation for any form of de-registration by a club once CASC status has been granted. This means that if your club ceases to meet the conditions of registration or no longer holds particular assets for qualifying purposes a capital gains tax liability may be created. This is because you will be treated as having disposed of and immediately re-acquired the property at the time you cease to be a CASC for a sum equal to its market value at the time
HMRC can take action if your CASC ceases to meet registration requirements
or no longer holds particular assets for qualifying purposes. This may result
in a capital gains tax liability. All other tax reliefs will also cease to
be available immediately a club fails to meet registration conditions.
For more information please see the detailed guidance notes about application
of assets on dissolution.
