REV BN 1: Community Amateur Sports Clubs

Who is likely to be affected?

1. Amateur sports clubs registered with the Inland Revenue as Community Amateur Sports Clubs (CASCs).

General description of the measure

2. This measure will increase the tax thresholds below which registered CASCs will pay no corporation tax. As a result more clubs will be removed from the requirement to complete a tax return on an annual basis.

Operative date

3. 1 April 2004.

Current law and proposed revisions

4. The CASC scheme was introduced in 2002. It provides some of the benefits of charitable status, but with a less stringent application process. Registered clubs pay no tax on bank or building society interest and no corporation tax on chargeable gains reinvested in the club. Clubs with trading income or income from property below certain thresholds will also pay no corporation tax.

5. This measure will double the corporation tax thresholds for registered CASCs. As a result, CASCs will be exempt from corporation tax on profits derived from trading, if their trading income is less than £30,000 and on profits derived from property, if their gross property income is less than £20,000. CASCs that do not exceed these thresholds will not have to complete a tax return on an annual basis.

Further advice

6. If you have any questions about this change, please contact the Inland Revenue Sports Club Unit on 0131 777 4147.

www.inlandrevenue.gov.uk