TWO THOUSAND SPORTS CLUBS NOW CASHING IN ON TAX BENEFITS
Sports Minister underlines 'win win situation' for amateur clubs
Over two thousand amateur sports clubs across the United Kingdom are now enjoying the tax benefits, reliefs on business rates and gift aid worth an estimated £5 million now available to them.
But the Sports Minister, Richard Caborn, is keen to see the many thousands more eligible clubs join them in registering with the Inland Revenue as a 'CASC' a Community Amateur Sports Club and reap the rewards.
He urged the clubs to look at a new leaflet being published today that shows how easy it is for them to claim huge cash savings.
Clubs registering as a CASC can benefit from:
Rate relief at 80% on the club's business rates
Exemption from corporation tax on trading income doubled to £30,000 and income from property doubled to £20,000
Exemption from capital gains tax when they sell off assets
Exemption from capital gains tax when they sell off assets
Caborn said the door was still wide open for other clubs to make the most of the scheme's benefits:
'It is fantastic to see that two thousand clubs are now reaping the rewards of the CASC Scheme. This new leaflet we are publishing today just shows how simple it is for a club to register and immediately benefit financially.
'Clubs could guarantee themselves a sustainable saving of thousands of pounds every year money that could be well spent on new equipment, changing rooms or training facilities'.
'Despite this landmark being reached, progress is a bit slow and there are many thousands of clubs that are still missing out. My call to those clubs is a simple one. Get involved now and get saving because being registered as a CASC is a win win situation for you'.
The CASC Scheme also provides a range of benefits to encourage communities to support their local clubs, including Gift Aid on donations by individuals, worth an additional 28 pence for every pound donated.
Gift Aid has already proved hugely successful to charities, giving the voluntary sector £2.3 billion in the last year.
The new leaflet can be viewed at the link below. It is being sent via Sports Governing Bodies to clubs right across the UK.
www.culture.gov.uk/sort/community_sport/inland_revenue.htm
Eligibility for CASC
Clubs wishing to access the reliefs through the CASC Scheme must register with the Inland Revenue. To be eligible for registration clubs must be able to show, in their rules, constitutions etc, that they:
Are open to the whole community, without discriminationAre organised on an amateur basis, i.e. non profit making.
Surpluses must be reinvested in the club. Distributions to members are not allowed
Have as their main purpose providing facilities for, and promoting participation in one or more eligible sports, i.e. those recognised by the Sports Councils.
Benefits of CASC
As of 1st April 2004 registered CASC's enjoy the following benefits:
Mandatory relief of 80% on non-domestic rates (a.k.a. 'business rates') for CASC's in England & Wales. The Scottish Executive has announced plans to introduce mandatory relief when time allows, but has an interim measure introduced discretionary relief of 80% for all clubs.
Exemption from capital gains tax on disposals of assets
Exemption from corporation tax on: - bank and building society interest - trading income up to £30,000 - income from property up to £20,000
Top 10 Registrations by Sport as at 31st November 2004
Sport Registrations
Cricket 406
Bowls 287
Lawn Tennis 166
Rugby Union 151
Golf 131
Football 129
Sailing 119
Multi Sports 112
Gaelic Football 56
Shooting 56
For more information on CASC, and to register, follow the link to the Inland Revenue website:
www.inlandrevenue.gov.uk/casc
Funny world eh?
