Generally, companies are liable to Corporation Tax on their taxable profits.
Some members' clubs, associations, societies, Community Amateur Sports Clubs (CASCs), and other unincorporated organisations may also be liable for Corporation Tax.
This page should help you decide if your club or other organisation is liable for Corporation Tax and what you need to do if it is.
It will also help you work out if your organisation or any of its activities are exempt from Corporation Tax.
On this page:
CASCs are sports clubs that are registered with HM Revenue & Customs (HMRC).
Registering as a Community Amateur Sports Club with HMRC
Sports clubs are liable for Corporation Tax on their profits but may qualify for tax relief to reduce their Corporation Tax bill. There are also other reliefs that clubs may be able to claim.
Additionally, some CASC activities are exempt from Corporation Tax. Provided that the income and/or gains generated by your CASC are used only for what's known as a 'qualifying purpose'. Generally, a qualifying purpose is providing facilities for eligible sports and encouraging people to take part in them.
In addition CASCs are exempt from Corporation Tax on:
Read more about Corporation Tax relief for CASCs
Tax on Community Amateur Sports Club trading or business activities
If your CASC is liable for Corporation Tax, it's normally subject to Corporation Tax deadlines and requirements. These include telling HMRC that it's liable, paying any Corporation Tax due and filing a Company Tax Return on time.
Deadlines and requirements for Corporation Tax
The following unincorporated organisations are generally subject to Corporation Tax deadlines and requirements:
The taxable profits or surpluses of these organisations are subject to Corporation Tax.
If your unincorporated organisation is liable for Corporation Tax, it's normally subject to Corporation Tax deadlines and requirements.
Who is liable for Corporation Tax
Find the Corporation Tax requirements for unincorporated organisations
Use form CT41G (Clubs) to tell HMRC that your new organisation is liable for Corporation Tax
HMRC may treat some clubs and unincorporated organisations with very small tax liabilities, (collectively known to HMRC as 'small clubs'), as dormant for Corporation Tax purposes.
To qualify, both of the following must apply:
If both these statements apply, HMRC will not send you a 'Notice to deliver a Company Tax Return' and will treat your organisation as dormant. They will review this at least every five years.
Read more about dormant companies and organisations
Additionally, and for each year of dormancy, your club or organisation must not have any:
Making a loss and Corporation Tax
Chargeable gains and Corporation Tax
What organisations are not covered by this exemption?
Most clubs and unincorporated organisations with very small tax liabilities are covered by the exemption except for the following:
Property Management Companies
HMRC may apply this treatment to your property management company if, as well as meeting all the criteria laid out in the previous sections, it meets all of the following additional criteria:
But if your property management company receives service charges which it must hold on trust for its tenants, it will be liable to Income Tax on any interest that arises on that fund. In effect, your company is acting as a trustee and may be required to deliver a tax return to the relevant HMRC Trust Office.
Income from service charges for UK properties that's held on trust is chargeable at the standard tax rates. For example, basic rate in the case of bank interest as trustees are not entitled to starting rate for savings income.
Generally, where the income is below £1,000 and taxed at source, you won't need to complete a return every year.
What to do if your organisation is treated as dormant
Most existing organisations and property management companies that meet the necessary conditions for this exemption will already be treated as dormant by HMRC. If your organisation isn't and you think it should be, contact your Corporation Tax Office.
If you've already received a letter from HMRC to say your organisation is to be treated as dormant, you don't need to contact HMRC until the end of the dormancy period unless your circumstances change. But you must contact your Corporation Tax Office immediately if your organisation no longer meets any of the conditions set out in the letter or undergoes a change that may affect its tax position.
Trading and non-trading for Corporation Tax explained
Use form CT204 (Active company) to tell HMRC that your dormant organisation is now active
Find your Corporation Tax Office
Introduction to Corporation Tax
Corporation Tax for new companies and organisations
Find more detailed guidance for CASCs
Find more information about CASCs on the CASC website (Opens new window)
