[5] Following the issuing of a consultation document by Her Majesty's Treasury in 2001, the Sport and Recreation Alliance (then CCPR) - who had campaigned for tax relief for clubs since 1999 - provided HMT with two proposals to help local sports clubs which HMT accepted: On 30 November 2001, the Charity Commission announced that it would now recognise as charitable: "The promotion of community participation in healthy recreation by the provision of facilities for the playing of particular sports."
Then on 17 April 2002, in his Budget, the Chancellor of the Exchequer introduced a package of tax reliefs to support Community Amateur Sports Clubs (CASCs) as an alternative route for those CASCs unable or unwilling to apply for charitable status.
For a club to be eligible for CASC status it must be able to demonstrate that it meets a number of conditions shown below.
To be considered open to the whole of the community: When determining who can join or make use of a club's facilities, a CASC cannot discriminate on the grounds of ethnicity, nationality, sexual orientation, religion or belief, sex, age or disability – except when it's necessary for taking part in a particular sport.
If the sport is an expensive one, the club must show what it does to make membership affordable for the whole community.
Clubs where membership and participation costs are £520 or less a year will be considered to be open to the whole community.
Clubs where membership and participation costs are in excess of £520 a year will need to demonstrate that there are special provisions in place, and the provisions are used in practice, for members on low or modest incomes to be able to participate fully in the club's activities for £520 or less a year.
Specialised equipment or items do not include objects that a member would normally be expected to own, such as trainers, basic gym clothing and waterproofs.
For example, it may be acceptable to charge a lower fee for a membership class in return for reduced access to the club's facilities, subject to ensuring that the members continue to be able to participate fully in the sport.
The £10,000 limit includes the cost of benefits a player receives in consequence of playing for the club.
For example, for an overseas player, the cost of flights, obtaining a visa and accommodation would need to be included.
A common example is where a member provides accommodation free of charge to an overseas player.
Payments to players must be agreed and minuted by the club's committee and the amounts must be determined on an arm's length basis.
Clubs can reimburse reasonable overnight expenses where it is not practical to make the journey home.
The income condition will apply to the turnover or receipts received from broadly commercial transactions with non-members, where the club is offering a commercial service or supply, for example: Non-members include: The maximum amount of turnover or receipts that a club may receive under the income condition will be £100,000 a year, excluding VAT.
Clubs generating higher levels of income will need to consider setting up a trading subsidiary.
The location condition makes it clear that the CASC scheme is open to qualifying sports clubs in other European Community Member States or relevant territories.