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Tax benefits for amateur sports clubs

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Amateur sports clubs are being encouraged to make use of the tax exemptions that are available to them. In particular, recent guidance from the Association of Taxation Technicians (ATT) has highlighted that registering as a Community Amateur Sports Club (CASC) could bring the club similar tax benefits to an organisation with charitable status.

Such benefits include an exemption from tax on capital gains, bank interest, trading profits (as long as the club’s trading turnover does not exceed £50,000 per annum) and up to £30,000 of rental income.

Sports clubs seeking to sell their premises or ground stand to benefit significantly from the tax exemption on capital gains.

If a CASC receives donations it might be able to top these up with ‘Gift Aid’ repayments from HMRC, again in a similar manner to a charity.

A CASC may also be eligible for charitable rate relief of up to 80%, or discretionary relief (100%) on business rates.

For more information on the tax rules governing CASCs, please get in touch.