Commentary

B5.902 Community amateur sports clubs—qualifying criteria

Business tax
Business tax | Commentary

B5.902 Community amateur sports clubs—qualifying criteria

Business tax | Commentary

B5.902 Community amateur sports clubs—qualifying criteria

The CASC qualifying criteria in FA 2002, Sch 18 were rewritten in CTA 2010, ss 658–671 (Pt 13, Ch 9) and these have subsequently been updated by regulations on 1 April 2015, though the majority of the amendments have retrospective effect from 1 April 2010 to enable HMRC to backdate the registration of clubs whose applications had been put on hold during the review of the legislation. CASCs that have always been fully compliant with the rules prior to 1 April 2015 will be given 12 months from the 1 April 2015 to meet the requirements of the new rules. If any of these CASCs are still unable to meet the new conditions after this time they will be deregistered with effect from 1 April 20161.

With effect from 1 April 2010, a club can be registered as a CASC provided conditions A, B and C below are met2:

  1.  

    (A)     The club is, and is required by its constitution to be:

    1.  

      (a)     open to the whole community

    2.  

      (b)     organised on an amateur basis, and

    3.  

      (c)     has as its main purpose the provision of facilities for, and the promotion of participation in, one or more eligible sports

  2.  

    (B)     The club meets:

    1.  

      –     the location condition, and

    2.  

      –     the management condition

  3.  

    (C)     The club meets the income condition

The club does not meet the main purpose test in (A)(c) above if the percentage of social members exceeds 50%3. A social member is one who does not participate,

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