CASC rules were updated on 1st April 2015 and action was required by all rugby CASCs that were registered with HMRC before this date.

If you have any queries, please contact davestubley@rfu.com or alexthompson@rfu.com.

Benefits of CASC registration:

The main benefits are:

• 80% mandatory business rate relief. Local authorities can offer a further 20% relief at their discretion
• The ability to raise funds using Gift Aid and the Gift Aid Small Donations scheme to reclaim £25 in tax for every £100 on donations from individuals (see below)
• Exemption from Corporation Tax on profits derived from trading activities if their gross trading income is below £50,000 pa
• Exemption from Corporation Tax on profits derived from property income if their gross property income is below £30,000 pa
• Exemption from Corporation Tax on capital gins and interest income
• Companies can receive Corporation Tax relief on donations to CASCs

What are the main criteria for becoming a CASC?

• Your club must have an open membership without discrimination
• Your club must promote and provide facilities for amateur rugby union or amateur sport recognised by Sport England if part of a multi-sports club
• Your club must be non-profit making – any profits must be reinvested back into the club
• Your club must be managed by fit and proper persons
• Membership fees must be less than £1,612 pa. As well as this, costs associated with membership must be affordable at less than or equal to £520pa. If not provision for those who can’t afford it must be made
• More than 50% of members must participate fully in the sport
• Your club must not exceed the gross trading and property income limit of £100,000 pa. Larger clubs which exceed this limit need to set up a trading subsidiary in order to be a CASC

CASC guidance – support documents

To assist clubs in navigating the new CASC guidance (April 2015), please consult the below documents:

• Incorporating an unincorporated Community Amateur Sports Club (CASC) 
• Clubs – CASC vs charity status
• Corporation tax and CASC rules
• RFU guidance – cost of participation template
• Social membership 50% – CASC rules
• Tours – CASC rules
• RFU guidance - draft agency letter from tour organiser to CASC

How to become a CASC

• Consider whether CASC registration is the right choice for your club after reading all the guidance. See HMRC CASC guidance.
• A club must have a CASC compliant constitution in order to register. The constitution must be an accurate reflection of the clubs policies and fulfil the requirements of CASC status.
• If your club wishes to register as a CASC you will need to complete the CASC application form along with a copy of the clubs constitution and other documents.

Club constitution sample rules

The RFU has produced two sets of CASC compliant sample rules:

• Sample rules for Rugby Football Clubs constituted as a Co-operative Society
• Sample Memorandum & Articles of Association for Rugby Football Clubs constituted as a company limited by guarantee qualifying as CASCs.

CASC – trading subsidiary

New regulations effective from 1 April 2015 require a club's total taxable gross (i.e. before expenses) from trading and property income to be less that £100,000pa.

There is also a requirement for 50% of the club's members to “participate” (the “social members” test). HMRC have suggested that clubs can meet the new income condition and remain CASC's by setting up a wholly owned trading subsidiary to take on the CASC's commercial activities. The subsidiary's profits can be donated to the CASC tax free.

Please find documents and guidance in relation to setting up a trading subsidiary below:

• Trading subsidiaries of CASCs
• CASC subsidiary structure chart
• Trading subsidiary articles of association
• CASC resource sharing agreement
• Alcohol licensing guidance
• CASC guidance on Non-Domestic Rates relief

Maximising the benefits of CASC status