Is your rugby club looking to save money or find ways to help fund new facilities? The Community Amateur Sports Club (CASC) scheme was introduced by government to help you do just this as well as ensuring that money is kept within amateur sport.
Registering as a Community Amateur Sports Club can provide a range of benefits for community rugby clubs. More than 6,800 clubs are registered as CASCs, claiming an estimated total cash benefit of at least £190m (source: www.cascinfo.co.uk – Monthly analysis of CASC registrations). Over 450 of these clubs are English rugby clubs.
Clubs should consider the benefits of CASC registration and review this alongside the RFU’s Why Incorporate guide. However, while many clubs will and do benefit from CASC registration, it is not right for every club and the decision to register should not be taken lightly. We recommend all clubs take independent professional advice when considering whether to become a CASC. There may also be the option of registering as a charity as an alternative to CASC.
The RFU needs to draw your attention to the fact that the CASC rules changed on 1st April 2015 and certain action was required by all rugby CASCs that were registered with HMRC before this date. If you have any queries regarding this please contact email@example.com or firstname.lastname@example.org.
Benefits of CASC registration:
The main benefits are:
- 80% mandatory business rate relief. Local authorities can offer a further 20% relief at their discretion
- The ability to raise funds using Gift Aid and the Gift Aid Small Donations scheme to reclaim £25 in tax for every £100 on donations from individuals (see below)
- Exemption from Corporation Tax on profits derived from trading activities if their gross trading income is below £50,000 pa
- Exemption from Corporation Tax on profits derived from property income if their gross property income is below £30,000 pa
- Exemption from Corporation Tax on capital gins and interest income
- Companies can receive Corporation Tax relief on donations to CASCs
What are the main criteria for becoming a CASC?
- Your club must have an open membership without discrimination
- Your club must promote and provide facilities for amateur rugby union or amateur sport recognised by Sport England if part of a multi-sports club
- Your club must be non-profit making – any profits must be reinvested back into the club
- Your club must be managed by fit and proper persons
- Membership fees must be less than £1,612 pa. As well as this, costs associated with membership must be affordable at less than or equal to £520pa. If not provision for those who can’t afford it must be made
- More than 50% of members must participate fully in the sport
- Your club must not exceed the gross trading and property income limit of £100,000 pa. Larger clubs which exceed this limit need to set up a trading subsidiary in order to be a CASC
CASC new guidance – support documents
To assist clubs in navigating the new CASC guidance (April 2015), please consult the below documents:
- Clubs – CASC vs charity status (PDF)
- Corporation tax and CASC rules (PDF)
- RFU guidance – cost of participation template (Word)
- Social membership 50% – CASC rules (PDF)
- Tours – CASC rules (PDF)
- RFU guidance - draft agency letter from tour organiser to CASC (Word)
How to become a CASC
- Consider whether CASC registration is the right choice for your club after reading all the guidance. HMRC CASC guidance can be found here.
- A club must have a CASC compliant constitution in order to register. The constitution must be an accurate reflection of the clubs policies and fulfil the requirements of CASC status.
- If your club wishes to register as a CASC you will need to complete the CASC application form along with a copy of the clubs constitution and other documents.
Club constitution Sample rules
The RFU has produced two sets of CASC compliant sample rules:
- Sample rules for Rugby Football Clubs constituted as a Co-operative Society (MS Word 64kB)
- Sample Memorandum & Articles of Association for Rugby Football Clubs constituted as a company limited by guarantee qualifying as CASCs
CASC – trading subsidiary
New regulations effective from 1 April 2015 require a club's total taxable gross (i.e. before expenses) from trading and property income to be less that £100,000pa. There is also a requirement for 50% of the club's members to “participate” (the “social members” test). HMRC have suggested that clubs can meet the new income condition and remain CASC's by setting up a wholly owned trading subsidiary to take on the CASC's commercial activities. The subsidiary's profits can be donated to the CASC tax free.
Please find documents and guidance in relation to setting up a trading subsidiary below:
- Trading subsidiaries of CASCs (PDF)
- CASC subsidiary structure chart (PDF)
- Trading subsidiary articles of association (Word)
- CASC resource sharing agreement (Word)
- Alcohol licensing guidance (PDF)
- CASC guidance on Non-Domestic Rates relief (PDF)
Maximising the benefits of CASC status
- By registering as a CASC your club will be eligible to claim Gift Aid on donations from individuals. CASC membership, playing fees and subscriptions do not qualify as donations.
- For any person who pays sufficient income or capital gains tax, the club can claim £25 for every £100 donated by that person. If a person is a 40% higher rate tax payer they will also be refunded £25 for every £100 they donate to a CASC.
- Please see here for guidance on claiming Gift Aid as a CASC.
- Please see a General Step by Step Guide to claiming Gift Aid for CASCs using the Volunteer Expenses methodwhich is a good way of maximising Gift Aid for your rugby club.
Gift Aid Small Donations Scheme (GASDS)
- If your CASC is claiming Gift Aid successfully it can also use the Gift Aid Small Donations scheme (GASDS) to claim back 25p in the £1 on small cash donations to the CASC but without the paperwork required when claiming Gift Aid.
- Please see here for guidance on claiming GASDS as a CASC.
A rugby club registered as a CASC can save corporation tax on profits from trading and property income in excess of the exempt limits by setting up a Trading Subsidiary.
www.cascinfo.co.uk is a dedicated website with information on the CASC scheme including the benefits, the qualifying criteria and as well as the latest news.
Keeping up to date with CASC
Rugby clubs registered as CASCs should ensure their club continues to comply with the CASC rules. HMRC guidance can be found here. In order for rugby clubs to keep up to date the RFU sends out CASC newsletters. The latest newsletter can be found below.
Disclaimer: This page provides generic information for clubs and whilst all reasonable care has been taken to ensure its contents are correct no responsibility can be accepted for any errors or omissions or for any loss incurred or sustained by any reliance placed on the information contained within it. Before taking any specific action based on this page clubs should take the appropriate professional advice.