Tax Exemption For Community Sports

If you help run a local sports club, i.e. the kid’s football team, tennis club or other organised sports activity, you may be interested to learn you can apply to HMRC to be treated as a registered community amateur sports club, a CASC.

If your club fits the following criteria there are a number of significant tax exemptions. The main qualifying conditions are:

  • The club must be open to the whole community
  • The club’s main purpose must be to provide facilities for eligible sports, and to Encourage people to take part in them
  • The club must be organised on an amateur basis

The club must also be able to show that:

  • It is set up and provides its facilities in an eligible area
  • It is managed by fit and proper persons

The corporation tax relief that you can expect if you do register will exempt the following sources of income:

  • Trading profits, if the turnover is no more than £30,000 per year (if turnover is more Than £30,000 all trading profits are taxable)
  • Income from letting property, if the rent is no more than £20,000 per year (if letting Income is more than £20,000 no exemption is possible)
  • Any interest your CASC gets
  • Any capital gains it makes
  • Any Gift Aid donations

Additionally you may qualify for relief from non-domestic rates. In England, Wales and Scotland this amounts to 80% rates relief. Contact your Local Authority finance department to apply..

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