Community amateur sports clubs

By Tolley
VAT_tax_img2

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Community amateur sports clubs
  • Community Amateur Sport Club Scheme
  • Applying for the scheme
  • Main benefits
  • VAT implications
  • Leaving the CASC scheme

This guidance note provides an overview of the VAT rules relating to community amateur sports clubs (CASC).

Community Amateur Sport Club Scheme

This scheme was introduced in 2002 and it enables local amateur sports clubs to register for tax reliefs with HMRC providing they meet certain conditions.

Corporation Tax Act 2010, Part 13, Chapter 9 (subscription sensitive); Community Amateur Sports Clubs Regulations 2015 ; HMRC – Community Amateur Sports Clubs: detailed guidance notes 

It is important to note that if a clubis registered under the CASC scheme then it is not entitled to register as a charity. Therefore it is important that the clubdetermines whether it is more suitable for it to become a CASC or a registered charity. However if the clubregisters as a CASC and later decides that it more appropriate to become a charity then it can wind down the CASC and transfer the trade and assets to a new charity.

HMRC has indicated that it does not consider that if a CASC is already registered as a charity it is likely to obtain any additional benefit from joining the scheme.

It is important to note that inclusion in the CASC scheme is intended to be permanent and a CASC should not request that it is removed from the scheme and it cannot withdraw an application to join the scheme once its been submitted to HMRC. Therefore a clubshould ensure that CASC is the right for the clubbefore it submits its application to HMRC. HMRC is obligated to register the clubas a CASC if it meets the eligibility criteria.

Changes

A number of changes took effect from 1 April 2015 that increased the tax exemptions for property and trading income. The changes were in relation to:

    More on Other trade sectors: