New rules, soon to be finalised, will be introduced for CASCs from 1st April 2015 and are likely to affect many community sports clubs which are CASCs.

Detailed guidance is currently being drafted by HMRC in consultation with NGBs. The CASC scheme has been, and will continue to be, vitally important to bolstering the finances of many sports clubs. The Government wishes to see the scheme grow and thrive and have introduced welcome improvements which include an increase in the tax exempt thresholds and corporate gift aid for CASCs. However the qualification conditions will be more prescriptive.

The main elements of the new scheme will include:

  • Non-member income must be under £100,000 pa. If exceeded the club will be able to stay in the scheme using a trading subsidiary for non-member activities – this will require careful planning.
  • A limit on membership costs (including membership fees and playing costs e.g. match fees) of £520 pa – if exceeded clubs must make provision for those who can’t afford £520 pa.
  • Only 50% of members can be non-participating (i.e. social members). The new rules will specify a definition of participation.
  • There is also likely to be more record keeping required of clubs.

Impact on sports clubs

All CASCs will have to review their circumstances to ensure they continue to qualify; some may have to make changes to stay in the scheme. The majority of existing CASCs should be able to remain in it if they approach this review carefully. There is no need to be concerned at this stage; the new rules and guidance are not yet finalised and clubs will have a year from April to assess their position and take appropriate action.

To find out more click here; http://www.cswsport.org.uk/upload/public/E-Update%20Items/E-Update%202015%20docs/CASCs%20-%20Update%20for%20SRA%20members%20Jan%202015.pdf