2034.This Chapter provides for the registration of community amateur sports clubs (CASCs) and exemptions from tax of registered clubs. It is based on Schedule 18 to FA 2002.
2035.Paragraph 9 of that Schedule has not been rewritten in this Chapter.
2036.Paragraph 9(1) is merely a signpost to Chapter 2 of Part 8 of ITA (gift aid) which treats a registered club as a charity (see section 430 of ITA). Paragraph 9(1) is not rewritten as it is unnecessary.
2037.The remaining provisions of paragraph 9 are rewritten in this Act by amending the provisions of IHTA, TCGA and CAA to which they cross–refer. See Schedule 1.
2038.This section sets out the three qualifying conditions which must be met for a club to be entitled to be registered as a CASC and be able to obtain an exemption from tax on relevant income or gains. It is based on paragraphs 1, 11(1) to (3) and (5) and 15(2) of Schedule 18 to FA 2002.
2039.In subsections (2) to (4) there is a reference to “an officer of Revenue and Customs”. This is a change from the source legislation in Schedule 18 to FA 2002 where the reference is to “the Inland Revenue” which is a reference to “the Board” under paragraph 15(2) of Schedule 18 to FA 2002. See Change 5 in Annex 1.
2040.There is also a change in the words used in subsection (5). In this case the change is to replace a reference to “Inland Revenue” which is a reference to “the Board” under paragraph 15(2) in the source legislation witha reference to “Her Majesty’s Revenue and Customs” for the publication of the names and addresses of clubs.See Change 5 in Annex 1.
2041.This section defines the term “open to the whole community”, which is the first of the qualifying conditions for being a registered club. It is based on paragraph 2 of Schedule 18 to FA 2002.
2042.This section defines the term “organised on an amateur basis”, which is the second of the qualifying conditions for being a registered club. It is based on paragraph 3 of Schedule 18 to FA 2002.
2043.“Match officials” in subsection (4)(h) includes coaches.
2044.This section does not rewrite the requirement in paragraph 3 of Schedule 18 to FA 2002 for certain formalities to apply if a club member supplies goods or services to the club or is employed by the club. See Change 48 in Annex 1.
2045.This section sets out the definitions of “eligible sport”, “qualifying purposes”, “non-qualifying purposes” and “non-qualifying expenditure” specific to this Chapter. It is based on paragraphs 8(1) and (7), 14(1), and 16 of Schedule 18 to FA 2002.
2046.There is an additional definition for “non-qualifying expenditure” which is implicit in the source legislation but this is now made explicit in the rewritten legislation.
2047.This section omits the provision in paragraph 14(2) of Schedule 18 to FA 2002 that a Treasury order designating a sport as an “eligible sport” is subject to annulment in pursuance of a resolution of the House of Commons. That provision is unnecessary as this Act contains general provisions to the same effect in section 1171.
2048.This section provides for the trading income of a registered club to be exempt from tax if the relevant conditions are met. It is based on paragraph 4 of Schedule 18 to FA 2002.
2049.This section provides for the property income of a registered club to be exempt from tax if the relevant conditions are met. It is based on paragraph 6 of Schedule 18 to FA 2002.
2050.This section provides for the interest and gift aid income of a registered club to be exempt from tax if the relevant conditions are met. It is based on paragraph 5 of Schedule 18 to FA 2002.
2051.Subsection (2) provides that if a club is registered for only part of an accounting period, that part is treated as a separate accounting period and the club’s interest income for that separate period is proportionately reduced. This approach follows that of the source legislation.
2052.In subsection (3) thedefinition of “gift aid income” now relies on Chapter 2 of Part 8 of ITA rather than section 25(10) of FA 1990 (see paragraph 5(3)(b) of Schedule 18 to FA 2002). Paragraph 5(4) of that Schedule is not now necessary because section 430 of ITA itself includes CASCs within the definition of charities for the purposes of gift aid.
2053.This section provides for the chargeable gains of a registered club to be exempt from tax. It is based on paragraphs 7 and 16 of Schedule 18 to FA 2002.
2054.This section provides for exemptions to be restricted if the club incurs expenditure for non-qualifying purposes. It is based on paragraphs 8 and 16 of Schedule 18 to FA 2002.
2055.The reference to “income receipts” replaces the reference in paragraph 8 to “income (whether taxable or not and before deduction of expenses)”.
2056.Paragraph 8(5) of Schedule 18 to FA 2002 provides a formula to ascertain the relevant surplus amount of non-qualifying expenditure. This is unpacked and set out in narrative form.
2057.This section supplements section 666. It is based on paragraph 8(5) to (8) of Schedule 18 to FA 2002.
2058.This section provides that a club may specify or be required to specify how the exempted income and gains are to be reduced in accordance with section 666. It is based on paragraphs 8(9) and 15(1) of Schedule 18 to FA 2002.
2059.This section provides that the exemption for chargeable gains on assets is not available if the club ceases to be registered or to hold the asset for qualifying purposes. It is based on paragraphs 10 and 16 of Schedule 18 to FA 2002.
2060.Paragraph 10 of Schedule 18 to FA 2002 refers to “property” but TCGA refers to disposals of “assets”. Consequently, the section refers to disposals of “assets” for the purposes of TCGA rather than disposals of “property”.
2061.Subsections (5) and (6) separate and clarify the process for making assessments and the time limit for doing so. These are dealt with together in paragraph 10(3) of Schedule 18 to FA 2002.
2062.This section provides for the notification of the decision by HMRC for registering a club, the refusal to register a club and the cancellation of the registration of a club. It is based on paragraphs 11(4) and 15(2) of Schedule 18 to FA 2002.
2063.Reference to “the Inland Revenue”, which is a reference to “the Board” under paragraph 15(2) in the source legislation,is replaced with a reference to “an officer of Revenue and Customs”. See Change 5 in Annex 1.
2064.This section sets out the provisions relating to appeals against decisions concerning a club’s application or registration. It is based on paragraphs 13 and 15 of Schedule 18 to FA 2002.
2065.In subsections (1), (5) and (6), reference to “the Inland Revenue”,which is a reference to “the Board” under paragraph 15(2) in the source legislation, has been replaced with a reference to “an officer of Revenue and Customs”. See Change 5in Annex 1.