New CASC Regulations 2015 – Will your Club still comply?

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The CASC (Community Amateur Sports Club) rules changed with effect from 1 April 2015.

Existing CASCs have a 12 month period of grace to see if they can still comply and to decide whether or not they wish to remain in the CASC scheme.

Existing CASCs can leave the CASC scheme during the year of grace if they wish, and they will not suffer a Capital Gains Tax (CGT) exit charge if their only reason for leaving is because they do not wish to comply with the changes in the new CASC scheme and they were fully compliant with the rules before 1 April 2015.

The new CASC Regulations can be found here.

In brief, the main changes are:

  1. Membership Fees

Membership fees for any member are subject to a limit of £1,612 per year (£31 a week) even if discounted rates are offered to others.

If the costs associated with being a member are greater than £520 per year (£10 a week), the CASC must make allowance for people on low incomes to be able to become members and participate fully for £520 or less.

  1. Social Membership

At least 50% of members must be participating members (either by playing or helping with organisation) of the CASC.  This remains from the previous rules.

A participating member must participate at least 12 times in a 12 month period (although seasonal sports can opt for a shorter season exemption).

  1. Payment of Players

Clubs will now be able to pay players subject to a maximum aggregate limit of £10,000 a year per club across all players.

Clubs will also be able to pay reasonable travel and subsistence expenses to players where they are participating in away games and club tours (conditions apply).

  1. Trading Income

While there is no limit on the amount of income CASCs may generate from members, there will be a new limit of £100,000 on income they can generate from trading with non-members.  Clubs generating higher levels of income will need to consider setting up a trading subsidiary.

Gift Aid for corporate donations was introduced in 2014 so the trading subsidiary can generate additional income for the CASC by passing its profits up to the CASC tax efficiently as a corporate Gift Aid donation.

  1. Fundraising Income

The exemption threshold from tax for annual trading income increases from £30,000 to £50,000.

  1. Rental Income

The annual rental income exemption threshold increases from £20,000 to £30,000.

If you have any queries on what the changes will mean in practice for your club, please contact John Devine on 0191 211 7905 or [email protected].