Part 13

Other special types of company etc
Chapter 9

Community amateur sports clubs

Basic concepts

Meaning of “community amateur sports club” and “registered club”
658
1
A club is entitled to be registered as a community amateur sports club if
conditions A, B and C
are met.
1A
Condition A is that the club is, and is required by its constitution to be, a club which—
a
is open to the whole community (see section 659),
b
is organised on an amateur basis (see section 660), and
c
has as its main purpose the provision of facilities for, and the promotion of participation in, one or more eligible sports (see
sections 660A and 661
).
1B
Condition B is that the club meets—
a
the location condition (see section 661A), and
b
the management condition (see section 661B).
1C
Condition C is that the club meets the income condition (see section 661CA).
2
A club may apply to an officer of Revenue and Customs to be registered as a community amateur sports club.
3
The officer must register the club as a community amateur sports club if satisfied that the club is entitled to be registered.
4
The officer—
a
may register the club with effect from such date as the officer may specify (which may be before the date of the application), and
b
may cancel the club's registration with effect from such date as the officer may specify (which may be before the date of the decision to cancel it) if no longer satisfied that the club is entitled to be registered.
5
Her Majesty's Revenue and Customs may publish the names and addresses of registered clubs.
6
In this Chapter a “registered club” means a club which is for the time being registered as a community amateur sports club under this section.

Meaning of “open to the whole community”
659
1
A club is “open to the whole community” for the purposes of section 658 if—
a
its membership is open to all without discrimination,
b
its facilities are available to members without discrimination, and
c
the costs associated with membership of the club for any year do not represent a significant obstacle to membership of the club, use of its facilities or full participation in its activities (see subsection (2A)).
2
For the purposes of this section “discrimination” includes indirect discrimination and (in particular) includes discrimination on the grounds of—
a
ethnicity or nationality,
b
religion or beliefs,
c
sexual orientation, or
d
sex, age or disability (except as a necessary consequence of the requirements of a particular sport).
2A
For the purposes of subsection (1)(c) the costs associated with membership of a club for any year represent a significant obstacle to membership of the club, use of its facilities or full participation in its activities if—
a
those costs exceed the amount specified for the year for the purposes of this subsection in regulations made by the Treasury, and
b
the club has not made such arrangements as are necessary to secure that those costs do not represent such an obstacle.
2B
The Treasury may by regulations make provision supplementing subsection (2A), including—
a
provision as to what constitutes full participation in a club's activities;
b
provision as to costs that are, or are not, to be regarded as the costs associated with membership of a club;
c
provision about calculating the amount of the costs associated with membership of a club for any year.
2C
The provision that may be made by regulations under this section includes—
a
different provision for different purposes, and
b
provision having effect in relation to times before the regulations are made.
2D
Section 1171(4) (orders and regulations subject to negative resolution procedure) does not apply to any regulations made under this section if a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, the House of Commons.
3
A club is not prevented from being “
open to the whole community
” for the purposes of section 658 merely because it charges different fees for different descriptions of person.

Meaning of “organised on an amateur basis”
660
1
A club is “organised on an amateur basis” for the purposes of section 658 if—
a
it is non-profit making (see subsections (2) and (3)),
b
it provides for members and their guests only the ordinary benefits of an amateur sports club (see subsections (4) and (5)), ...
ba
it does not exceed the limit on paid players (see subsection (5A)), and
c
its constitution provides for any net assets on its dissolution to be applied for approved sporting or charitable purposes (see subsections (6) and (7)).
2
A club is “non-profit making” for the purposes of subsection (1) if its constitution —
a
requires any surplus income or surplus gains to be reinvested in the club, and
b
does not allow the distribution of any of its assets (in cash or in kind) to members or third parties.
3
A club is not prevented from being “non-profit making” for those purposes merely because it makes donations to charities or registered clubs.
4
The following are “the ordinary benefits of an amateur sports club” for the purposes of subsection (1)—
a
the provision of sporting facilities,
b
the reasonable provision and maintenance of club-owned sports equipment,
c
the provision of suitably qualified coaches,
d
the provision, or reimbursement of the costs, of coaching courses,
e
the provision of insurance cover,
f
the provision of medical treatment,
g
the reimbursement of necessary and reasonable travel or subsistence expenses incurred by players, match officials, coaches, first-aiders and accompanying individuals in connection with away matches,
h
the reasonable provision of post-match refreshments for players and match officials, and
i
the sale or supply of food or drink as a social benefit which arises incidentally from the sporting purposes of the club.
4A
In subsection (4)(g)—
a
“subsistence expenses” means expenses on food, drink and temporary living accommodation,
b
an “accompanying individual” means an individual accompanying a person who—
i
has a disability for the purposes of the Equality Act 2010, and
ii
is a player or match official.
5
A club is not prevented from providing for members and their guests only the ordinary benefits of an amateur sports club for the purposes of subsection (1) merely because—
a
a member supplies goods or services to the club on an arm's length basis, or
b
the club employs members of the club on an arm's length basis.
5A
A club does not exceed the limit on paid players for the purposes of subsection (1) if—
a
the number of persons paid to play for the club does not at any time exceed the specified maximum,
b
the number of such persons in any year does not exceed the specified maximum for that year,
c
the amount paid to any such person in any year in respect of activities undertaken for the club does not exceed the specified maximum for that year, and
d
the total amount paid to such persons in any year in respect of activities undertaken for the club does not exceed the specified maximum for that year.
“
Specified
” means specified in regulations made by the Treasury.
5B
The Treasury may by regulations make provision supplementing subsection (5A), including—
a
provision as when a person is, or is not, to be regarded as a person paid to play for a club, and
b
provision about calculating for the purposes of subsection (5A) the amount paid to such a person.
6
In relation to any club, the following are “sporting or charitable purposes” for the purposes of subsection (1)—
a
the purposes of the governing body of an eligible sport for the purposes of which the club existed, for use in related community sport,
b
the purposes of another registered club, and
c
the purposes of a charity.
7
Purposes of a club are “approved” sporting or charitable purposes for the purposes of subsection (1) if they are approved by—
a
the members of the club in general meeting, or
b
the members of the club's governing body.
8
The Treasury may by regulations make further provision as to when a club is “
organised on an amateur basis
” for the purposes of section 658.
9
The provision that may be made by regulations under subsection (8) includes—
a
provision as to the conditions which a club must meet in order to be “
organised on an amateur basis
” for the purposes of section 658;
b
provision as to what are, or are not, to be regarded as “
ordinary benefits of an amateur sports club
” for the purposes of subsection (1);
c
provision about persons who are, or are not, to be regarded as guests of a member of a club for the purposes of subsection (1).
10
Regulations made under subsection (8) may amend this section or make other amendments to this Chapter.
11
A statutory instrument that contains (whether alone or with other provisions) regulations under subsection (8) that amend this section or make other amendments to this Chapter may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.
12
The provision that may be made by regulations under this section includes—
a
different provision for different purposes, and
b
provision having effect in relation to times before the regulations are made.
13
Section 1171(4) (orders and regulations subject to negative resolution procedure) does not apply to any regulations made under this section if a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, the House of Commons.

Clubs consisting mainly of social members
660A
1
A club is not to be regarded as a club that has as its main purpose the provision of facilities for, and the promotion of participation in, one or more eligible sports if the percentage of its members who are social members exceeds the percentage specified for the purposes of this section in regulations made by the Treasury.
2
A member is a “
social member
” for the purposes of this section if the member does not participate, or participates only occasionally, in the sporting activities of the club.
3
The Treasury may by regulations make provision—
a
as to activities that are, or are not, to be regarded as “sporting activities” of a club;
b
as to the circumstances in which a member of a club is, or is not, to be regarded as participating in the sporting activities of the club;
c
as to the circumstances in which a member of a club is, or is not, to be regarded as participating only occasionally in those activities.
4
The provision that may be made by regulations under this section includes—
a
different provision for different purposes, and
b
provision having effect in relation to times before the regulations are made.
5
Section 1171(4) (orders and regulations subject to negative resolution procedure) does not apply to any regulations made under this section if a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, the House of Commons.

Meaning of “eligible sport”, “qualifying purposes” etc
661
1
For the purposes of this Chapter “eligible sport” means a sport which is designated for those purposes by an order made by the Treasury.
2
An order under this section may designate a sport by reference to its inclusion in a list maintained by a body specified in the order.
3
For the purposes of this Chapter “qualifying purposes” means—
a
the purpose of providing facilities for one or more eligible sports, and
b
the purpose of promoting participation in one or more eligible sports.
4
For the purposes of this Chapter “non-qualifying purposes” means purposes which are not qualifying purposes.
5
For the purposes of this Chapter “non-qualifying expenditure” means expenditure which is incurred for non-qualifying purposes.

The location condition
661A
1
A club meets the location condition for the purposes of section 658 if—
a
it is established in
the United Kingdom
..., and
b
the facilities that it provides for eligible sports are all located in
the United Kingdom
....
2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The management condition
661B
1
A club meets the management condition for the purposes of section 658 if its managers are fit and proper persons to be managers of the club.
2
In this paragraph “
managers
”, in relation to a club, means the persons having the general control and management of the administration of the club.

Periods over which management condition treated as met
661C
1
This paragraph applies in relation to any period throughout which the management condition is not met.
2
The management condition is treated as met throughout the period if the Commissioners for Her Majesty's Revenue and Customs consider that—
a
the failure to meet the management condition has not prejudiced the purposes of the club, or
b
it is just and reasonable in all the circumstances for the condition to be treated as met throughout the period.

The income condition
661CA
1
A club meets the income condition for the purposes of section 658 if the sum of—
a
the receipts brought into account in calculating the club’s trading income (“trading receipts”), and
b
the receipts brought into account in calculating the club’s property income (“property receipts”),
does not exceed the relevant threshold.
2
For the purposes of subsection (1), any exemption under section 662 (exemption for
UK
trading income) or 663 (exemption for
UK
property income)
is to be ignored.
3
For the purposes of subsection (1), if in an accounting period (“period A”) a club becomes, or ceases to be, registered then—
a
the part of period A in which the club is registered is to be treated as a separate accounting period from the remainder of that period, and
b
the club’s trading receipts and property receipts for period A must be apportioned between those periods.
4
In this section—
- “property income” means income of a
UK
property business or an overseas property business,
- “the relevant threshold” means—
  1. £100,000 in the case of an accounting period which is 12 months, and
  2. a proportionally reduced amount in the case of a shorter accounting period, and
- “trading income” means profits which, if chargeable to corporation tax, would be chargeable under Chapter 2 of Part 3 of CTA 2009
and are—
  1. profits of a trade, or
  2. profits of an activity other than a trade,
whether or not that trade or activity is carried on wholly or partly in the United Kingdom.
S. 660A inserted (1.4.2010) by Finance Act 2013 (c. 29), Sch. 21 paras. 5, 9 (with Sch. 21 para. 10); S.I. 2015/674, art. 2
S. 659(2A)-(2D) inserted (1.4.2010) by Finance Act 2013 (c. 29), Sch. 21 paras. 2(3), 9 (with Sch. 21 para. 10); S.I. 2015/674, art. 2
S. 659(1)(c) substituted (1.4.2010) by Finance Act 2013 (c. 29), Sch. 21 paras. 2(2), 9(2) (with Sch. 21 para. 10); S.I. 2015/674, art. 2
S. 659(3) substituted (1.4.2010) by Finance Act 2013 (c. 29), Sch. 21 paras. 2(4), 9(2) (with Sch. 21 para. 10); S.I. 2015/674, art. 2
S. 660(5A)(5B) inserted (1.4.2010) by Finance Act 2013 (c. 29), Sch. 21 paras. 3(5), 9 (with Sch. 21 para. 10); S.I. 2015/674, art. 2
S. 660(8)-(11) inserted (1.4.2010) by Finance Act 2013 (c. 29), Sch. 21 paras. 3(6), 9 (with Sch. 21 para. 10); S.I. 2015/674, art. 2
S. 660(12)(13) inserted (1.4.2010) by Finance Act 2013 (c. 29), Sch. 21 paras. 3(7), 9 (with Sch. 21 para. 10); S.I. 2015/674, art. 2
S. 660(1)(ba) inserted (1.4.2010) by Finance Act 2013 (c. 29), Sch. 21 paras. 3(2), 9(2) (with Sch. 21 para. 10); S.I. 2015/674, art. 2
Word in s. 660(1)(b) omitted (1.4.2010) by virtue of Finance Act 2013 (c. 29), Sch. 21 paras. 3(2), 9(2) (with Sch. 21 para. 10); S.I. 2015/674, art. 2
Words in s. 660(4)(g) inserted (1.4.2010) by Finance Act 2013 (c. 29), Sch. 21 paras. 3(3)(a), 9(2) (with Sch. 21 para. 10); S.I. 2015/674, art. 2
Words in s. 660(4)(g) substituted (1.4.2010) by Finance Act 2013 (c. 29), Sch. 21 paras. 3(3)(b), 9(2) (with Sch. 21 para. 10); S.I. 2015/674, art. 2
Ss. 661A-661C inserted (retrospective to 6.4.2010) by Finance Act 2010 (c. 13), Sch. 6 paras. 32, 35
S. 658(1)-(1B) substituted for s. 658(1) (retrospective to 6.4.2010) by Finance Act 2012 (c. 14), s. 52(1)(3)
Words in s. 658(1A)(c) substituted (retrospectively) by Finance Act 2013 (c. 29), Sch. 21 paras. 4, 9(2) (with Sch. 21 para. 10); S.I. 2015/674, art. 2
S. 661CA inserted (1.4.2015) (with effect in accordance with reg. 1(3) of the amending S.I.) by The Community Amateur Sports Clubs Regulations 2015 (S.I. 2015/725), regs. 1(1), 4
Words in s. 658(1) substituted (1.4.2015) (with effect in accordance with reg. 1(3) of the amending S.I.) by The Community Amateur Sports Clubs Regulations 2015 (S.I. 2015/725), regs. 1(1), 3(a)
S. 658(1C) inserted (1.4.2015) (with effect in accordance with reg. 1(3) of the amending S.I.) by The Community Amateur Sports Clubs Regulations 2015 (S.I. 2015/725), regs. 1(1), 3(b)
Words in s. 660(4) substituted (1.4.2015) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Community Amateur Sports Clubs Regulations 2015 (S.I. 2015/725), regs. 1(1), 10(2)
Words in s. 660(4)(g) substituted (1.4.2015) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Community Amateur Sports Clubs Regulations 2015 (S.I. 2015/725), regs. 1(1), 10(3)(a)
Words in s. 660(4)(g) substituted (1.4.2015) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Community Amateur Sports Clubs Regulations 2015 (S.I. 2015/725), regs. 1(1), 10(3)(b)
S. 660(4A) substituted (1.4.2015) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Community Amateur Sports Clubs Regulations 2015 (S.I. 2015/725), regs. 1(1), 10(4)
Words in s. 661A(1)(a) substituted (31.12.2020) by The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 17(9)(a)(i) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)
Words in s. 661A(1)(b) substituted (31.12.2020) by The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 17(9)(a)(ii) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)
Words in s. 661A(1)(a) omitted (with effect in accordance with s. 345(2)-(6) of the amending Act) by virtue of Finance (No. 2) Act 2023 (c. 30), s. 345(1)(a)(i)
Words in s. 661A(1)(b) omitted (with effect in accordance with s. 345(2)-(6) of the amending Act) by virtue of Finance (No. 2) Act 2023 (c. 30), s. 345(1)(a)(ii)
S. 661A(2) omitted (with effect in accordance with s. 345(2)-(6) of the amending Act) by virtue of Finance (No. 2) Act 2023 (c. 30), s. 345(1)(b)