Community Amateur Sports Clubs (CASC)
Tax reliefs available to CASCs
Amateur sports clubs in the UK may apply to HM Revenue & Customs (HMRC) to be registered as a Community Amateur Sports Club (CASC). CASC status is an alternative to charitable registration and is intended to support clubs that promote amateur sport within the community.
While CASCs do not have charitable status, they benefit from a range of tax reliefs that are broadly comparable to those available to charities. In return, clubs must comply with strict eligibility conditions and ongoing requirements.
All tax reliefs depend on income and assets being applied solely for qualifying sporting purposes and subject to the asset-lock conditions imposed by CASC legislation.
The principal reliefs include:
Business rates relief
CASCs are entitled to 80% mandatory relief from non-domestic rates on properties used for the club’s sporting purposes. Local authorities may, at their discretion, grant further relief.
Corporation tax exemptions
CASCs are exempt from corporation tax on certain types of income, subject to statutory limits and provided the funds are applied for qualifying purposes. In summary:
Where these limits are exceeded, the excess income may become taxable and, in some cases, the club may need to consider a separate trading arrangement.
Gift Aid and donations
CASCs can reclaim basic rate income tax on qualifying donations from individuals under the Gift Aid scheme, currently equivalent to 25p for every £1 donated. CASCs may also benefit from the Gift Aid Small Donations Scheme, allowing claims on small cash donations without a formal declaration, subject to statutory limits.
Membership subscriptions do not qualify for Gift Aid.
Inheritance tax
Gifts made to a CASC during a donor’s lifetime, or by way of legacy on death, are exempt from inheritance tax.
Key conditions for CASC registration
HMRC applies strict eligibility rules before granting CASC status and will review the club’s constitution in detail. The main conditions include the following.
Open membership
A CASC must be open to the whole community. Membership must not be restricted by gender, ethnicity, disability or other prohibited grounds, and facilities must be available to all members without discrimination.
Affordability
Membership fees must be set at a level that does not exclude the wider community. HMRC currently regards fees exceeding £31 per week (£1,612 per annum) as inconsistent with this requirement.
Amateur status
The club must be organised on an amateur basis. While payments to players are permitted, total payments to all players must not exceed £10,000 per year.
Income limits
A CASC’s combined taxable trading and rental income must not exceed £100,000 per year. Breaching this limit can result in loss of tax reliefs or the need for restructuring.
Sporting participation
At least 50% of the club’s members must actively participate in sporting activities, ensuring that the club remains primarily focused on sport.
Asset lock and use of club assets
A fundamental requirement of CASC status is the introduction of an asset lock. This ensures that the club’s income and property are permanently applied for community sporting purposes.
As part of the registration process, HMRC will normally require amendments to the club’s constitution to confirm that:
This is often a significant issue for long-established clubs. Once CASC status is granted, members permanently lose any right to share in the club’s assets, including land and buildings, on liquidation.
Committees should ensure that members clearly understand this consequence before proceeding, as the tax advantages of CASC status come at the cost of giving up private ownership rights over club assets.
VAT and CASC status
CASC registration does not provide any special VAT reliefs. For VAT purposes, CASCs are treated in the same way as other non-profit-making clubs and are not regarded as charities. VAT registration and recovery must therefore be considered separately.
Registration process
HMRC will carry out a detailed review of the club’s rules as part of the CASC application process and will often require constitutional amendments before approval is granted. The process can be time-consuming and should be actively managed. Good practice is for the committee to appoint a specific officer to oversee the application and ensure continuing compliance once registration is achieved.
Final observations
CASC status can offer substantial financial benefits for amateur sports clubs, but it also imposes clear legal and practical obligations. Committees should carefully balance the tax advantages against the permanent restrictions placed on the use of income and assets, and ensure that both officers and members understand the long-term implications before proceeding.