Community Amateur Sports Clubs (CASCs)
Following consultation, the Budget introduces an alternative route for CASCs to access tax reliefs on their income and donations from local people, which are similar to the tax reliefs normally given to charities. The Charity Commission will publish tomorrow its revised guidelines on applying for charitable status. Sports clubs are free to choose to apply either to the Charity Commission for charitable status, and the tax treatment that goes with charitable status, or directly the Inland Revenue for the tax reliefs specifically for CASCs.
The Budget measure will provide CASCs with exemption from:
- corporation tax on interest
- corporation tax on any trading income up to £15,000
- corporation tax on income from property up to £10,000 and
- capital gains tax on disposals of assets
Donors to CASCs will be able to give using the following reliefs:
- Gift Aid for individuals
- Inheritance tax
- Gifts of assets to a CASC on a no gain/no loss basis for capital gains purposes for both individuals and companies
- Gifts of trading stock and plant and machinery by businesses.
Q. What is a CASC?
A. A Community Amateur Sports Club is a club which;
- is open to the whole community without discrimination
- is organised on an amateur basis and
- provides facilities for, and promotes participation in, an eligible sport.
Q. What is an eligible sport?
A. .A sport which appears on the list maintained by Sport England and the other sports councils.
Q. When can a club apply to be registered?
A. It will not be possible for the Inland Revenue to register a CASC before the legislation in the Finance Bill has completed its progress through Parliament. That is likely to be the end of July 2002.
Q. Where should an application be sent?
A. To Inland Revenue (Charities)
Q. When do the tax changes take effect?
A. From April 2002.
