Government consultation on sports clubs opens

Measures include a proposal to allow community amateur sports clubs to pay players and claim Gift Aid

Amateur sports clubs: consultation
Amateur sports clubs: consultation

The government has launched a consultation on proposals that will allow community amateur sports clubs to pay players and claim Gift Aid.

In March, Treasury minister Sajid Javid announced plans for a consultation to clarify the legislation on CASCs that are registered with HM Revenue & Customs.

CASCs registered with HMRC can claim charitable tax reliefs including Gift Aid and relief on corporation tax. However, Javid said the existing legislation was unclear about which organisations could register with the HMRC scheme and what they were able to do.

The consultation, launched on Monday, clarifies the rules on several issues, including the charging of fees, the payment of players and how much social income clubs can earn.

Under the existing rules, CASCs are allowed to pay members to carry out certain duties, such as coaching and running a club bar, but they are not permitted to pay players. The consultation 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 to be organised on an "amateur basis".

The government is also seeking views on how many social members a club can have and how much social and other non-sporting income it can raise and still remain in the scheme.

The consultation outlines proposals to increase the corporation tax exemption limits for CASCs on trading income and rental income from £30,000 and £20,000 to £40,000 and £25,000 respectively.

The consultation will run until 12 August.

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