News

CASC applications on hold as government consults on the scheme

Finance | Niki May Young | 5 Mar 2013

HMRC has announced that it will open a consultation to clarify restrictions on the Community Amateur Sports Clubs scheme, and advised that new legislation will be necessary.

Since its introduction in 2002 the CASC scheme has provided cash benefits of £135m to the 6,334 registered CASCs, which can claim for gift aid and other reliefs. However the scheme has been criticised as unclear. Announcing the consultation Sajid Javid, Economic Secretary to the Treasury, said:

"Some of the eligibility rules in the legislation are unclear and cause confusion. This makes it difficult for clubs and HMRC always to be sure about whether a club is entitled to relief. Clearer more certain rules would help existing and prospective clubs to be confident about what they need to do to qualify."

Clarifications around the maximum annual fees and income generated to qualify for the tax relief scheme will be included in a consultation document as well as "more generous" rules for travel expenses. These amendments will require legislation, said Javid.

HMRC is to speed up the amendment process by incorporating provisions in the Finance Bill before launching a consultation on further more detailed legislation.

In the mean time a number of clubs have had their applications for the tax relief scheme put on hold pending the results of the consultation which will launch after the publication of the Finance Bill due on 28 March. Javid said the clubs affected will receive letters advising them of the consultation. 

The consultation was welcomed by the Sport and Recreation Alliance, which has lobbied the government for two years on the matter. Chief executive Tim Lamb said: "It is a clear indication that the current legislation defining the scheme is not as good as it should be and various outstanding technical issues need to be addressed. 

"Hopefully by the autumn sports bodies will be able to promote a reinvigorated, clearer and more flexible CASC scheme."

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Directory: HM Revenue & Customs (HMRC)