If you help run a local sports club, i.e. the kid’s football team, tennis club or other organised sports activity, you may be interested to learn you can apply to HMRC to be treated as a registered community amateur sports club, a CASC.
If your club fits the following criteria there are a number of significant tax exemptions. The main qualifying conditions are:
- the club must be open to the whole community
- the club’s main purpose must be to provide facilities for eligible sports, and to encourage people to take part in them
- the club must be organised on an amateur basis
The club must also be able to show that:
- it is set up and provides its facilities in an eligible area
- it is managed by fit and proper persons
The corporation tax reliefs that you can expect if you do register exempt the following sources of income:
- trading profits, if the turnover is no more than £30,000 per year (if turnover is more than £30,000 all trading profits are taxable)
- income from letting property, if the rent is no more than £20,000 per year (if letting income is more than £20,000 no exemption is possible)
- any interest your CASC gets
- any capital gains it makes
- any Gift Aid donations
Additionally you may qualify for relief from non-domestic rates. In England, Wales and Scotland this amounts to 80% rates relief. Contact your Local Authority finance department to apply.