For further information on CASCs please contact Pete Hackleton - +44 (0) 20 7007 4340

Many community sports clubs and local authorities are failing to take advantage of potential savings of up to £60m per annum under the Community Amateur Sports Club (CASC) scheme.  New research from the latest report by Deloitte, indicates that 4,097 clubs (at 30th November 2006) have registered for the scheme since 2002, from a potential target group of around 40,000 UK amateur sports clubs which are active in the community.

The CASC scheme was unveiled in November 2001, but despite recently celebrating its 5th birthday many amateur sports clubs are still unaware of the scheme’s existence. 

Clubs signing up for the scheme qualify for a number of tax advantages:

• Mandatory relief on an annual basis for 80% of the total business rates bill, often a significant cost for clubs.
• Ability to reclaim gift aid on any donations from individuals – this means that for every pound donated clubs can claim an extra 28p from the government.
• Exemption from corporation tax on profits within certain limits, to allow clubs to reinvest small profits for the benefit of its members.
  

The advantages of the scheme for amateur sports clubs are clear - Deloitte estimates that the 4,097 clubs who have registered for the scheme have benefited by around £16.2m, or £4,000 per club.

It is in relation to business rates relief that local authorities could make savings.  At present, many authorities give discretionary business rates relief to amateur sports clubs.  However if clubs registered as CASC’s they would qualify for mandatory rate relief, which would be funded centrally, not out of the local authority budget.  The additional funds could then be reinvested into community sport.  Based on the detailed figures which one local authority shared with us, we believe the potential annual savings for local authorities would be in the region of £2.5m per annum.

A recent Deloitte survey contacted 200 local authorities representing over 50% of all local authorities in the UK.  Of the 105 councils that responded, 71 were aware of the CASC scheme, but just 20 (10%) were still actively promoting the scheme to local community sports clubs.  Further, just 10 (5%) of the 200 councils had links on their website to either the dedicated CASC website or the CASC section of the HMRC website.  In line with Government’s ‘Health agenda’, local authorities could clearly do much more to publicise the scheme and effectively generate more funds for sport by encouraging community sports clubs to register as CASC’s.

Pete Hackleton, Senior Tax Manager in the Sports Business Group at Deloitte said “It is frustrating that more clubs are not taking advantage of the tax incentives available.  We have noted that clubs registering for the scheme have saved approximately £4,000 each so far which goes a long way towards improving sports facilities at grass roots level and encouraging children to get involved in sport.”

Whilst the scheme is not appropriate to all amateur sports clubs due to the qualifying conditions, Deloitte believes that an estimated £60m per annum in savings could be made if the many eligible clubs were to sign up for the scheme. 

The challenge going forward is to make clubs aware of the CASC scheme and encourage those who haven’t already to register.  There are a number of qualifying criteria, but broadly clubs are eligible to join the scheme if they:

• Are open to the whole community; and
• Are organized on an amateur basis; and
• Have as their main purpose providing facilities for and encouraging participation in an eligible sport.
  

The CCPR (Central Council of Physical Recreation) continues to try and raise the profile of the scheme and have established a website (http://www.cascinfo.co.uk/) devoted exclusively to promoting the scheme and providing useful information to those clubs wishing to register.  Local authorities also have a responsibility to play a part in this process to encourage community sports clubs.

Hackleton added “According to recent reports a third of children in the UK are now either overweight or obese.  Community sport has an important role to play in keeping Britain healthy and quite rightly regularly approaches Government to demand further incentives to encourage participation.  In order to persuade

Government to invest further in sport, clubs need to ensure that they take advantage of the existing benefits available to them”.

Ends

About the Sports Business Group at Deloitte

Over the last 15 years Deloitte has developed a unique focus on the business of sport. Our specialist Sports Business Group offers a multi-disciplined expert service with dedicated people and skills capable of adding significant value to the business of sport. Whether it is benchmarking or strategic business reviews, operational turnarounds, revenue enhancement strategies or stadium/venue development plans, business planning, market and demand analysis, acquisitions, due diligence, expert witness, audits or tax planning; we have worked with more clubs, leagues, governing bodies, stadia developers, event organisers, commercial partners, financiers and investors than any other adviser. For further information on our services you can access our website at www.deloitte.co.uk/sportsbusinessgroup

About Deloitte

In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities.  Neither DTT nor any of its member firms has any liability for each other’s omissions. 

Services are provided by member firms or their subsidiaries and not by DTT.  Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.  The information contained in this press release is correct at the time of going to press. 

Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority. The information contained in this press release is correct at the time of going to press.