The Treasury has launched a consultation to clarify the qualifying conditions a community amateur sports club must meet to benefit from charity tax reliefs.

Community amateur sports clubs (CASCs) registered with HM Revenue & Customs can claim a variety of charity-type tax reliefs including gift aid. In March of this year, Treasury minister Sajid Javid announced plans for a consultation to clarify the legislation on CASCs, saying the existing legislation was unclear on which organisations were eligible, and what they were able to do.

The consultation also considers changes, such as extending corporate gift aid and increasing trading and rental limits, to help certain clubs retain CASC status where they have high levels of income from members or non-sporting activities.

The consultation also proposes that clubs should be able to pay one player a year up to £5,000, before tax and national insurance, and still be considered amateur. Under existing rules, CASCs cannot pay players.

The consultation will run until 12 August.