Hedge End Sports Clubs – Are you Missing Out on Tax Savings?

The Sports Minister Gerry Sutcliffe says thousands of the UK’s amateur sports clubs are missing out on tax savings, to the tune of millions of pounds.

In recognition of the important role sports clubs play in the community, the Community Amateur Sports Club scheme was set up in 2002. Amateur clubs joining the scheme are eligible for tax advantages to enable profits to go back into the clubs, and so benefitting sport and the community.

Clubs can register with the scheme if they meet the following requirements: that they are a recognised sport (as defined by the Sports Council – see the CASC website for a link to their list); that they promote amateur sports participation; where membership is non-discriminatory and open to the whole community: and where the organisation is non-profit making, with any profits going into club funds for investment in the club.

CASC member clubs can claim 80 percent business rate relief – although local authorities can make this up to 100% relief – and those with profits under £30,000 a year are exempt from Corporation Tax. Tax can also be reclaimed through Gift Aid, which can mean up to an additional £28.20 for every £100 donated by a tax-paying individual – with an additional £23.10 on top if the donor is a higher tax-payer.

The Chancellor of the Exchequer has said relief on business rates alone could be worth as much as £2,000 per year to a facility-owning club.

Minister for Sport Gerry Sutcliffe said: “It is great that we have signed up more than 5,500 clubs to the Community Amateur Sports Club scheme and that many sports clubs are reaping the benefits it brings. But there are thousands of clubs out there that are missing out.

“Sports clubs will play a crucial role in helping us reach our goal of getting 2 million people more active by 2013. Being part of the scheme means that clubs will have more funds at their disposal to help increase participation.”

There are currently 5,424 clubs registered with the scheme and Deloitte estimates that these clubs have benefitted from an estimated £60.9 million in tax savings over the eight years.

Nick Jacobs, senior manager in Deloitte’s Sports Business Group, said: “The advantages of the CASC scheme are clear. The tax savings allow clubs to invest in better facilities which in turn should encourage more young people to take up sport. Taking advantage of the existing tax benefits for community sport is the first crucial step towards nurturing our sporting abilities and enhancing the nation’s future sporting potential.”

To see if your sports club is eligible for membership of the CASC scheme, visit their website.