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CASC Update for February 2016

Blue Sail boat The CASC scheme was originally introduced in 2002 and enables amateur sports clubs to register with HMRC and benefit from a preferential tax status.

RYA Supporters Club Model Template 

Clubs will recall that we have been working on a Supporters Club Pack which we hope clubs can utilise to set up a separate supporters club to accommodate less active/inactive members in order to avoid breaching the new Participation Condition.   

The documentation is now on the RYA website.  

Funding Awards and CASC

We have been approached by a number of clubs with concerns over the potential impact of CASC de-registration on their Sport England Awards.

We are able to confirm that CASC status is not a requirement of the Inspired Facilities programme or any other Sport England programme.   

Sport England ask whether a club is a CASC to enable it to build a picture of the types of organisations applying and to enable it to verify the existence of the applicant with the appropriate body (e.g. Companies House, Charities Commission, HMRC etc.).

If you are de-registering as a CASC under the amnesty then you should probably inform Sport England of this (by email) in order that it can maintain its records.

Some clubs may need to amend their Constitutions if de-registering as a CASC which again is acceptable for Sport England purposes provided that the amendments do not limit membership or change the dissolution clause.  

The Amnesty Clock is ticking

The amnesty means that existing CASCs have a year of 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 has published guidance on the grace period and the procedure to de-register.

If your club is considering leaving the scheme as well as taking into account the loss of mandatory rate relief, we suggest you consider any corporation tax implications and to that end we have drawn up Corporation Tax Guidance.

CASC Workshops at the RYA Suzuki Dinghy Show

The RYA will be holding CASC workshops at the RYA Suzuki Dinghy Show on Saturday 05 March, 1230 to 1330 and on Sunday 6th March from 1130 to 1230 (subject to demand). Book your place on a workshop.

RYA CASC Guidance

We are continually updating 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.

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