The Government has announced it intends to amend the law to make the Community Amateur Sports Clubs (CASC) qualifying conditions clearer for sports clubs. HMRC will be issuing a consultation document on the matter later in the spring with enabling legislation to be introduced in the Finance Bill 2013.

By way of reminder, the CASC scheme provides a number of charity-type tax reliefs to support local sports clubs. In order to access these tax reliefs clubs must meet certain conditions and must register with HMRC.

However, it has long been the view that some of the eligibility rules in the legislation are unclear and cause confusion with the result that it can be difficult for clubs and HMRC always to be sure about whether a club is entitled to relief. The planned consultation is intended to introduce clearer, more certain rules.

The proposed consultation document will cover a range of issues, including:

• The maximum annual fee, to include the costs of participation, which a club can charge and still be considered a CASC; the consultation will seek views on a range of maximum fees.
• CASCs will be able to charge more than the maximum annual fee if they have measures in place to allow people on low and modest incomes to participate fully at a cost of no more than the maximum fee.
• The rules and limits for CASCs on generating income from social and non-sporting activities will be updated to provide clarity with the consultation exploring a number of possible limits. Where clubs generate income over the limits, the consultation will also explore how clubs can separate this activity into a wholly-owned subsidiary company.
• The consultation will include proposals for more generous rules for travel expenses, and changes to allow clubs to make limited payments to players.

More information is available from www.publications.parliament.uk.