Can your club command cash?

OA Saints Rugby Club is a local amateur sports club that is open to the whole community.

Before the visit by Adam and his Cash Commandos they didn't realise it, but this entitles them to some special benefits.

Patrick Stevens, a tax partner at Ernst and Young, explains:

Community Amateur Sports Clubs (CASCs) like OA Saints can capitalise on recent benefits introduced by the government to reduce tax.

The sport can be just about anything from aikido to yoga, and as long as there are no restrictions to membership - other than sex where appropriate to the sport - there are a number of generous tax exemptions available.

Exemption

The benefits include exemption from corporation tax on its profits where the club's turnover is under �15,000, as well as on property income where the gross rent received is less than �10,000.

There is a full tax exemption on any interest received and on any capital gains.

Together, these exemptions could save your club a significant amount of tax, allowing you to replace your old equipment or buy that minibus.

Donors

There are also benefits available to donors making contributions to registered CASCs.

Probably the most relevant of the benefits to most sports clubs will be that of gift aid.

Donors can make gifts using the gift aid scheme, allowing relief of tax on payments, potentially to both the club and the individual (where they pay higher rate tax).

This is because gifts made under gift aid will be treated as having paid after deduction of basic rate income tax.

Therefore, as long as it uses the money for its qualifying activities, the CASC can apply for a repayment of tax of 28p for each �1 donated.

Should the donor pay tax at a higher rate, they can claim additional relief of the difference between the basic and higher rate (i.e. at the current rates of 40p and 22p, this will be 18p in the pound).

There is relief from Inheritance Tax on gifts and no Capital Gains Tax on gifts of assets.

Also, if you know of any sports companies, businesses can contribute equipment that they make or sell and get relief for the cost.

How to register

So what are you waiting for?

To find out if your club can register, check the list of eligible sports on the link below, make sure that you fulfil the criteria of providing community sports for all, and register the club using the CASC3 and CASC4 forms on the Inland Revenue website.

There is also help available from the Inland Revenue's Sports Club Unit, who you can call on 0131 777 4147.

Even better news is that the government are now looking at extending the benefits from April 2004, increasing the turnover limit to �30,000 and rental income to �20,000.

On top of this there should be 80-100% mandatory rates relief available from the same date.

Hey Big Spender! will be broadcast on Wednesday, 28 January, 2004, at 2100 GMT on BBC One.