CASCs were invented in 2002 as a way of encouraging sports participation the benefits and reliefs are similar to those enjoyed by charities, but CASCs do not need to register with the Charity Commission, or prepare charity accounts.
Benefits of being a CASC
1. Exemption from corporation tax on:
- trading profits if turnover is less than £50k per annum
- income from letting if less than £30k per annum
- interest
- chargeable gains
- Gift Aid donations
2. Non-domestic rates relief
3. Gift Aid – they can reclaim tax refunds
Conditions for CASC status
These have recently changed (since 01/04/15) and are now as follows:
1. Must be open to the whole community
2. Must be organised on an amateur basis
3. Main purpose must be the provision of sporting facilities or the promotion of participation in sport
4. Must not exceed the income limit of £100k per annum from non-member trading and property income
5. Must meet the management condition (managers must be fit and proper)
6. Must meet the location condition (i.e. be in the EC)
Recent changes that might be problematic
1. Fees and participation: Fees must be less than £1,612 per annum; and if they are over £520 then the club must make provision for poorer people.
2. At least 50% of members must be participating members.
