The CASC scheme was originally introduced in 2002 and enables amateur sports clubs to register with HMRC and benefit from a preferential tax status.
As readers of Club Room will be aware, the Community Amateur Sports Clubs Regulations 2015 came into force on 1st April 2015.
HMRC have provided Detailed Guidance on the new regulations.
During the process of the changes to the CASC scheme it came to light that HMRC felt that honorary memberships were in breach of the scheme, however, interestingly the new CASC Regulations are silent on the issue as is HMRC’s Detailed CASC Guidance.
We are delighted to be able to report that we have received confirmation from HMRC that honorary memberships are to be permitted within the CASC scheme. We do not yet know whether there may be conditions attached to their use; we are scheduled to meet with HMRC on 27th November where honorary memberships will be discussed. We will update readers in future issues of Club Room.
The Amnesty clock is ticking
The amnesty means that existing CASCs have a year's grace, which commenced 1st April 2015, to determine whether they wish to / or indeed can remain in the scheme.
Provided existing CASCS notify HMRC of their intention to withdraw from the scheme before 1st April 2016 they will be able to leave the scheme during this year of grace if they wish. They will not incur a Capital Gains Tax exit charge if their only reason for leaving is not wishing to/not being able to comply with the scheme’s new conditions and they were fully compliant with the rules before 1st April 2015. They will not have to repay the previous year’s 80% mandatory rate relief.
It is important to recognise that if HMRC believe a club is de-registering under the amnesty in circumstances where it had not been fully compliant with the previous CASC rules it may well investigate the club with a resulting Capital Gains Tax penalty. We therefore recommend that any club considering de-registration contacts Mandy Peters.
HMRC have published guidance on the grace period and the procedure to de-register.
RYA CASC Guidance
We have updated our own Guidance to help you get to grips with the new conditions and what they mean for your club.
This is an evolving document that we will update regularly following further discussions with HMRC, other NGBs and our own clubs thereby ensuring that we are able to capture as many examples of good practice as possible and reflect them in the Guidance.
We are organising a number of CASC workshops around the regions and would suggest that you contact your RDO to express an interest in a workshop being held in your region.
If you have not already contacted us regarding the changes to the scheme please do so as there may be implications for your club that are not readily apparent from an initial reading of the legislation and guidance.
We would encourage all CASCs to contact Mandy Peters to discuss how the revised conditions are likely to affect them.
Tel: 023 8060 4225
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