Statutory Instruments
2015 No. 725
Capital Gains Tax
Corporation Tax
Income Tax
The Community Amateur Sports Clubs Regulations 2015
Made 16th March 2015
Coming into force 1st April 2015

The Treasury make the following Regulations in exercise of the powers conferred by sections 659(2A), (2B) and (2C), 660(5A)(d), (5B), (8), (9)(a) and (b), (10) and (12) and 660A(1), (3) and (4) of the Corporation Tax Act 2010 and paragraph 8(1), (2)(a) and (3) of Schedule 21 to the Finance Act 2013.
2010 c. 4. Section 1122 and 1123 of the Corporation Tax Act 2010 define “connected persons” and section 1174 defines ITEPA 2003. Section 659 (2A), (2B) and (2C) were inserted by paragraph 3 of Schedule 21 to the Finance Act 2013. Section 660(5A)(d), (5B) (8), (9)(a) and (b), and (12) were inserted by paragraphs 3(5), (6) and (7) of Schedule 21 to the Finance Act 2013. Section 660A was inserted by paragraph 5 of Schedule 21 to the Finance Act 2013.
2013 c. 29.
A draft of this instrument was laid before, and approved by a resolution of, the House of Commons in accordance with section 660(11) of the Corporation Tax Act 2010 and paragraph 8(4) of Schedule 21 to the Finance Act 2013.
Section 660(11) was inserted by paragraph 3(6) of Schedule 21 to the Finance Act 2013.

PART 1 Preliminary

Citation, commencement, effect and interpretation
1. (1) These Regulations may be cited as the Community Amateur Sports Clubs Regulations 2015 and come into force on 1st April 2015.
(2) Regulations 6, 10 and 14 have effect on and after 1st April 2015.
(3) Regulations 2 to 5, 7 to 9, 11 to 13 and 15 to 19 are to be treated as having effect on and after 1st April 2010.
(4) In these Regulations “CTA 2010” means the Corporation Tax Act 2010.

PART 2 Meaning of “community amateur sports club” and “registered club”

Amendment of CTA 2010
2. Regulations 3 and 4 amend Chapter 9 of Part 13 of CTA 2010 (community amateur sports clubs).

Meaning of community amateur sports club
3. In section 658 (meaning of “community amateur sports club” and “registered club”)—
Section 658(1), (1A) and (1B) were substituted by section 52(1) of the Finance Act 2012 (c. 14) and subsection (1A) was amended by paragraph 4 of Schedule 21 to the Finance Act 2013.
(a) in subsection (1) for “conditions A and B” substitute “conditions A, B and C”;
(b) after subsection (1B) insert—

“(1C) Condition C is that the club meets the income condition (see section 661CA).”.

Income condition
4. After section 661C insert—

“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.
Sections 662 and 663 were amended by paragraphs 6 and 7 of Schedule 21 to the Finance Act 2013.
(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—
(a) £100,000 in the case of an accounting period which is 12 months, and
(b) 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—
2009 c. 4; Chapter 2 of Part 3 of the Corporation Tax Act 2009 has been amended by the CTA 2010 section 177, Schedule 1 paragraph 592 and Taxation (International and Other Provisions) Act 2010 section 374, Schedule 8 paragraphs 308 to 310.
(a) profits of a trade, or
(b) 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.”.

Section 661C was inserted by paragraphs 30 and 32 of Schedule 6 to the Finance Act 2010 (c. 13).

PART 3 Costs associated with membership of a club and membership fees

Costs associated with membership of a club
5. (1) The amount specified for a year for the purposes of section 659(2A) of CTA 2010 (costs associated with membership of a club) is £520.
(2) The costs associated with membership of a club for a given year consist of amounts A and B together.
(3) Amount A is the membership fees for a member for that year (see regulation 8).
(4) Amount B is the sporting activity costs for that year (see regulation 9).

Limit on membership fees
6. A club is not entitled to be registered as a community amateur sports club under section 658 of CTA 2010 if it receives membership fees exceeding £1,612 in respect of any member in respect of any year.

Apportionment of limits in regulations 5(1) and 6
7. (1) Where—
(a) the membership fees charged by the club vary by reference to duration of the membership, or
(b) the club offers memberships for periods of greater or less than one year,
the limits specified in regulations 5(1) (costs associated with membership of a club) and 6 (limit on membership fees) are proportionately reduced or increased accordingly.
(2) If a club chooses to reduce the participation threshold (see regulation 19), the limits specified in regulations 5(1) (costs associated with membership of a club) and 6 (limit on membership fees) are proportionally reduced by reference to the number of weeks the club is open.

Membership fees
8. (1) “Membership fees” means—
(a) any joining fees, and
(b) any supplementary fees, subscriptions or other costs,
charged by the club as a condition of membership.
(2) In calculating the costs associated with membership—
(a) where a club charges a membership fee which relates to more than one member, that fee is to be divided the number of members to which it relates, and
(b) where a club charges membership fees which vary, whether by reference to the duration of the membership or otherwise, the highest fee is to be used.

Sporting activity costs
9. (1) “Sporting activity costs”, for a year, means charges, fees or other costs that a member would be required to pay or incur to participate fully in the club’s activities for the year (other than membership fees).
(2) Sporting activity costs include, in particular—
(a) any fee that a member is required to pay to use the club’s facilities for the purpose of playing an eligible sport;
(b) any fee charged to play an eligible sport in a match;
(c) any fee charged by the club for the use of specialist equipment required to play an eligible sport;
(d) where it is not provided free of charge—
(i) the cost of hiring or purchasing any specialist equipment required to play an eligible sport; and
(ii) the cost of hiring or purchasing any clothing required by the club to play an eligible sport; and
(e) the cost of insurance cover required by the club to play an eligible sport.
(3) For the purposes of paragraph (2)(c) and (d)(i) specialist equipment includes equipment required for the purposes of health and safety.
(4) Sporting activity costs paid or incurred—
(a) under paragraph (2)(a), (b) or (c); and
(b) where equipment is hired rather than purchased, under paragraph (2)(d),
are calculated by reference to a member participating fully in the club’s activities.
(5) For the purposes of this regulation, a member is not to be treated as participating fully in the club’s activities unless the member has the opportunity to participate—
(a) where a club chooses to apportion the participation threshold in accordance with regulation 19(1) (apportionment of days of participation: seasonal sports), on at least one occasion in each week the club is open; or
(b) where a club chooses not to apportion the participation threshold in accordance with regulation 19(1), on at least 52 occasions.

PART 4 Meaning of “organised on an amateur basis”

Meaning of “organised on an amateur basis”
10. (1) Section 660 of CTA 2010 (meaning of “organised on an amateur basis”) is amended as follows.
(2) In subsection (4), for “the following are “ordinary benefits of an amateur sports club”” substitute “the following are “the ordinary benefits of an amateur sports club””.
(3) In subsection (4)(g)—
(a) for “reasonable” substitute “necessary and reasonable”;
(b) for “players and officials” substitute “players, match officials, coaches, first-aiders and accompanying individuals”.
(4) For subsection (4A) substitute—

“(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
2010 c. 15.
(ii) is a player or match official.”

Limit on paid players
11. (1) For the purposes of section 660(1)(ba) of CTA 2010 (limit on paid players), a club does not exceed the limit on paid players if the total amount paid to persons paid to play for the club in any year, in respect of activities undertaken for the club, does not exceed £10,000.
(2) For the purposes of this regulation, “year” means an accounting period of the club.
(3) But where the club’s accounting period is shorter than 12 months the limit in paragraph (1) is proportionately reduced.
(4) If a club is a registered club for only part of an accounting period, this regulation has effect as if that part were a separate accounting period.
(5) An individual is only regarded as a person paid to play for a club (“a paid player”) if conditions A to E (see regulation 12) are met.
(6) The amounts paid to paid players are to be calculated in accordance with regulation 13.

Paid players
12. (1) Condition A is that the individual is paid to play an eligible sport for the club.
(2) Condition B is that all amounts paid to the player to play for the club—
(a) are agreed on an arm’s length basis, or
(b) if not agreed on an arm’s length basis, are agreed in circumstances where the features of the agreement which cause it to be otherwise than on an arm’s length basis, when taken together, are more advantageous to the club than if the agreement had been on an arm’s length basis.
(3) Condition C is that the individual is not—
(a) a manager (within the meaning of section 661B(2) of CTA 2010) or an officer of the club, or
Section 661B was inserted by paragraphs 30 and 32 of Schedule 6 to the Finance Act 2010.
(b) connected with a manager or an officer of the club.
(4) Condition D is that the individual is not paid by one registered club to play for another registered club.
(5) Condition E is that the individual is not paid by a person other than the club, or a person connected to the club, to play for the club.

Calculating amounts paid to a player
13. (1) This regulation makes provision in relation to the calculation of the total amount paid to paid players in any year for the purposes of the limit specified in regulation 11(1).
(2) Amounts paid to a paid player means any amounts paid to the player for playing for the club which would be—
(a) earnings within Chapter 1 of Part 3 of ITEPA 2003, or
2003 c.1.
(b) treated as earnings under Chapters 2 to 11 of Part 3 of ITEPA 2003 (the benefits code).
Chapters 2 to 11 of ITEPA 2003 have been amended on a number of different occasions.
(3) Amounts paid to a paid player to play for the club include payments made in respect of the following—
(a) training for the purposes of playing an eligible sport, and
(b) travel for the purposes of playing or training for an eligible sport.
(4) But amounts paid to a player do not include the reimbursement of reasonable and necessary travel or subsistence expenses referred to in section 660(4)(g) of CTA 2010.
(5) Amounts paid to a paid player include any payments made pursuant to an agreement or understanding (whether or not legally enforceable).
(6) For the purposes of this regulation the paid player is to be treated as employed to play for the club and the provisions of ITEPA 2003 referred to in paragraph (2) are to apply accordingly.

Travel and subsistence
14. (1) Subsistence expenses are neither necessary nor reasonable for the purposes of section 660(4)(g) of CTA 2010 if the journey is a reasonable daily journey.
(2) In this regulation, a “reasonable daily journey” means one where the total travel time to and from the match from the club base is no more than four hours.
(3) In paragraph (2), the “club base” is the address for the club registered with Her Majesty’s Revenue and Customs under section 658 of CTA 2010.
(4) Travel and subsistence expenses incurred in connection with away matches are neither necessary nor reasonable for the purposes of section 660(4)(g) of CTA 2010 unless the main purpose of the match or matches is the promotion of, and participation in, an eligible sport.

PART 5 Clubs consisting mainly of social members

Clubs not to be regarded as meeting the main purpose test
15. For the purposes of section 660A(1) of CTA 2010 (clubs consisting mainly of social members), the percentage specified is 50%.

Participating in the sporting activities of the club
16. (1) For the purposes of section 660A(2) (definition of social member) of CTA 2010, “participating in the sporting activities of the club” means—
(a) participating in an eligible sport organised by the club;
(b) being a match official for an eligible sport for the club;
(c) coaching club members in an eligible sport;
(d) providing first aid to persons playing an eligible sport for the club;
(e) being an accompanying individual (within the meaning of section 660(4A)(b) of CTA 2010) for the club;
(f) driving a club vehicle, or a vehicle hired by the club, to transport persons listed in sub-paragraphs (a) to (e) or equipment on behalf of the club for the purposes of the participation in activities referred to in those sub-paragraphs;
(g) preparing or maintaining club sporting facilities or equipment for use in an eligible sport;
(h) being an officer, or a committee member, of the club; or
(i) undertaking a relevant training course for the purposes of sub-paragraphs (a) to (d), (g) or (h).
(2) Where an event planned by the club is cancelled due to extreme circumstances outside the club’s control then planned participation in that event is deemed to be participation.

Occasional participation in the sporting activities of the club
17. (1) For the purposes of section 660A(2) of CTA 2010, a member participates only occasionally in the sporting activities of the club in an accounting period if that member does not meet the participation threshold for that accounting period.
(2) For the purposes of this regulation, the participation threshold is participation in the sporting activities of the club on the required number of days in the accounting period of the club.
(3) The required number of days is determined in accordance with table 1.
Table 1
Number of weeks in the club’s accounting period	Participation threshold (number of days)
4 or fewer	1
5 to 8	2
9 to 12	3
13 to 16	4
17 to 20	5
21 to 24	6
25 to 28	7
29 to 31	8
32 to 35	9
36 to 39	10
40 to 43	11
44 or more	12
(4) If the club is registered for only part of an accounting period, that part is to be treated as a separate accounting period for the purposes of this regulation.

Apportionment of days of participation: duration of membership
18. (1) Where a person is a member of a club for only part of an accounting period, the participation threshold in regulation 17 is determined by using table 2 in place of table 1 for the purposes of that regulation.
(2) For the purposes of calculating weeks of membership for table 2, a person is a member during any given week if that person is a member for any part of that week.
Table 2
Number of weeks of membership	Participation threshold (number of days)
4 or fewer	1
5 to 8	2
9 to 12	3
13 to 16	4
17 to 20	5
21 to 24	6
25 to 28	7
29 to 31	8
32 to 35	9
36 to 39	10
40 to 43	11
44 or more	12

Apportionment of days of participation: seasonal sports
19. (1) Where a club is only open for part of the accounting period, that club may choose to reduce the participation threshold in regulation 17 for all members and use table 3 for the purposes of that regulation in place of table 1.
(2) If a club chooses to reduce the participation threshold under paragraph (1) and a person is a member of a club for only part of an accounting period, then regulation 18 applies to determine the participation threshold for that person and table 2 in regulation 18 is used in place of table 3.
(3) A club is open during any given week if any of the facilities provided by the club are made available to members for any part of that week.
Table 3
Number of weeks the club is open	Participation threshold (number of days)
4 or fewer	1
5 to 8	2
9 to 12	3
13 to 16	4
17 to 20	5
21 to 24	6
25 to 28	7
29 to 31	8
32 to 35	9
36 to 39	10
40 to 43	11
44 or more	12
David Evennett
John Penrose
Two of the Lords Commissioners of Her Majesty’s Treasury
16th March 2015

EXPLANATORY NOTE
(This note is not part of the Regulations)
A sports club may be registered by HMRC as a Community Amateur Sports Club (CASC) provided it meets certain conditions. These Regulations make further provision about those conditions. CASCs benefit from a number of tax reliefs, including an exemption from tax on certain income and gains (provided the club uses the income and gains for qualifying purposes), Gift Aid and non-domestic rates relief.
Regulations 2, 3 and 4 amend Chapter 9 of Part 13 of the Corporation Tax Act 2010 (c. 4) (“the CTA 2010”) to introduce a new condition restricting the amount of trading and property income a club can receive. These regulations are to be treated as having effect on or after 1st April 2010. The power to make provision having effect in relation to times before the Regulations are made is contained in paragraph 8(3)(c) of Schedule 21 to the Finance Act 2013 (c.29).
Regulations 5 to 9 make provision about the costs associated with membership of a club and membership fees. Regulations 5 and 7 to 9 are to be treated as having effect on or after 1st April 2010. The power to make provision having effect in relation to times before the Regulations are made is contained in section 659(2C)(b) of the CTA 2010.
Regulation 10 makes minor amends to section 660 of the CTA 2010 which sets out when a club is “organised on an amateur basis” for the purposes of section 658.
Regulations 11 to 13 make provision about the total amount a club may pay to persons paid to play for the club in any year and are treated as having effect on or after 1st April 2010. The power to make provision having effect in relation to times before the Regulations are made is contained in section 660(12)(b) of the CTA 2010.
Regulation 14 makes provision about travel and subsistence expenses for the purposes of section 660(4)(g) of the CTA 2010.
Regulations 15 to 19 make provision about when 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 because the percentage of its members who are social members exceeds a specified percentage. Regulation 15 provides that the specified percentage of social members for the purposes of section 660A(1) of the CTA 2010 is 50%. Regulation 16 makes provision about the circumstances in which a member is to be regarded as participating in the sporting activities of a club and regulation 17 defines what is meant by occasional participation. Regulations 18 and 19 provide for apportionment of the participation threshold in regulation 17 where a person is a member of a club for only part of an accounting period or a club is only open for part of an accounting period. Where a club chooses to apportion the participation threshold in accordance with regulation 19, the limits on costs associated with membership and membership fees in regulations 5(1) and 6 are reduced by reference to the number of weeks the club is open. Regulations 15 to 19 are to be treated as having effect on or after 1st April 2010. The power to make provision having effect in relation to times before the Regulations are made is contained in section 660A(4)(b) of the CTA 2010.
A Tax Information and Impact Note covering this instrument will be published online at http://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.