Devon Cricket Board - HMRC consultation – Community Amateur Sports Clubs

HMRC consultation – Community Amateur Sports Clubs

HMRC consultation – Community Amateur Sports Clubs

HMRC have published a consultation document on draft legislation setting out proposals to amend the qualifying conditions for community amateur sports clubs (CASCs), for comment by 5 November 2014.

This is part of an ongoing process to update the rules which provide a number of tax exemptions and reliefs to support local amateur sports clubs.

The new draft legislation follows responses to a consultation launched in June 2013 and aim to keep the rules as clear and as straightforward as possible. Some clubs who are already CASCs may need to change how they are structured to remain eligible.

The key proposed changes are: -

· An overall limit of £100,000 a year on income from trading and property that a CASC may receive;

· All income, except rents, from full voting members will not normally be taxable. Juniors who do not vote, but are otherwise full club members are treated in the same way;

· An increase from £30,000 to £50,000 of the exemption from Corporation Tax for trading receipts;

· An increased from £30,000 to £50,000 of the exemption from Corporation Tax for rental income;

· The maximum costs associated with CASC membership will be set at £520 per person per year – equivalent to £10 per week;

· Clubs will be able to charge more than this where a sport may require expensive and specialised equipment; but must take steps to ensure those who cannot afford higher costs can fully participate for no more than £520 a year. Clubs in this scenario will be subject to an upper limit of £1,612 a year or £31 a week;

· Clubs will be able to pay any number of players to play for the club, up to a limit of £10,000 a year. This limit includes cash payments to the player and benefits provided e.g. car, accommodation;

· Clubs will be able to pay travel and subsistence expenses to players, match officials and other specified individuals in certain circumstances, including contributions towards the costs of participating in an official club tour. At the moment only expenses to away games are allowed;

· At least 50% of CASC members must be participating in the sport;

· A participating member must participate in the sporting activities of the club on at least 12 separate days a year. Sporting activities include providing coaching, officiating, groundsman, parents transporting teams in a minibus (but not private vehicles) as well as playing and training.

Anyone who wishes to see the new draft rules should go to https://www.gov.uk/government/publications/draft-legislation-community-amateur-sports-clubs-technical-consultation

All clubs who are already CASCs or who are thinking about becoming a CASC should read the proposed changes as you may be to update your constitution to qualify or continue to qualify.

If anyone has any questions concerning how this might affect their club please contact Jon Sparkes by email jonsparkes1974@aol.com

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