The following Private Client guidance note Produced in partnership with Jacqui Lazare of Royds Withy King provides comprehensive and up to date legal information covering:
'Amateur sport' is when a sportsperson is taking part in a sport and not getting paid to do so. For a long time community amateur sports clubs (CASCs) have enjoyed a number of charitable tax reliefs in recognition of their similarities with charities.
Section 660 of the Corporation Tax Act 2010 sets out the basis on which a sports activity is regarded as being organised on an amateur basis. The key principles are that:Corporation Tax Act 2010, s 660Community Amateur Sports Clubs Regulations 2015, SI 2015/725
it is non-profit making
it provides for members and their guests the ordinary benefits of an amateur sports club
it does not exceed the limit on paid players
While these principles are not enshrined in the Charities Act 2011 (CA 2011), it is generally accepted that the above definition could apply to charities in the same way as to CASCs.
The CASC scheme was introduced in April 2002. It has enabled many local amateur sports clubs to register with HMRC and benefit from a range of tax reliefs. CASCs are not charities and so do not come under the regulation of the Charity Commission.
The CASC scheme is governed by the same legislation referred to above. Since its introduction, the following changes have been made by the Community Amateur Sports Club Regulations 2015, SI 2015/725:Community Amateur Sports Clubs Regulations 2015, SI 2015/725
increases in tax exemptions
a new income limit condition
requirement for CASCs to have 50% participating members
travelling and subsistence expenses
payments to players—this must not be more than £10,000 in a 12-month period
restrictions on the level
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