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Changes to Tax Rules for Community Sports Clubs

Football pitchThe Government has announced changes to the tax reliefs available to Community Amateur Sports Clubs (CASCs) which are intended to allow more clubs to benefit from the scheme.

The changes will allow CASCs to earn higher tax-free profits from ancillary services such as bars, cafés and venue hire. Where these services are provided through trading subsidiaries, the subsidiary will be able to donate a larger amount back to the sports club without tax being levied.

The amount that CASCs can generate from trading without paying corporation tax will increase from £30,000 to £50,000 and the amount that can be generated through rental income from non-members will increase from £20,000 to £30,000.

Changes are also being made to allow CASCs to meet a wider range of player fees and expenses, with a view to increasing support for promising players. Businesses will also be able to obtain tax relief on donations to CASCs.

However, the changes also introduce a limit on the cost of membership. CASC relief will not be available to clubs which charge membership fees of more than £31 per week, and those which charge more than £10 per week must offer alternatives for those who cannot afford this amount.

See HMRC guidance for CASCs.