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Calling all Lymington Sports Clubs...

Calling all Lymington Sports Clubs...

Its worth checking out the Community Amateur Sports Club scheme (CASC)!

 

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Here in Lymington we are fortunate to have many sports clubs. The Community Amateur Sports Club scheme (CASC) can be highly advantageous for eligible local amateur sports clubs and is certainly worth consideration. The CASC scheme is separate and distinct from being a registered charity, in fact a club cannot be both a CASC and a Charity.

 

Certain new restrictions apply since 1 April 2015:

 

  • Income: there must be no more than £100,000 p.a. of income from non-members. This includes bar sales and social events.
  • Usage (NEW TEST): the club must show that it has at least 50% of members participate above the required level of activity. Broadly this is 12 times a year but reduced if the club’s activities do not operate 52 weeks a year. This applies to all members, including all members on a family membership. The Club must maintain records to show that it is complying with this.

 

Becoming a CASC brings a number of benefits:

 

  1. Tax free: all interest received and trading profits on any taxable activities up to £50,000 p.a.
  2. Gift Aid: on donations received from eligible donors
  3. Sponsoring: payments by businesses are tax deductible without qualification as trading expense
  4. Property rates: 80% relief

 

If your CASC fails to meet the new rules this year then it must cancel its CASC registration from 1 April 2016 (next year). 

 

The eligibility rules are complex and the new usage rule could be most onerous to prove compliance. For more information, please get in touch. It is better to be safe than sorry! Lashmars Tax Accountants are here to help.

 

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© Lashmars Tax Accountants 2015.

This communication is intended to provide general guidance on matters of interest and you should not act or refrain from acting upon any information contained in it without seeking appropriate professional advice.

 

 

 

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