RUGBY FOOTBALL UNION

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RUGBY FOOTBALL UNION

• CASCS
• ROSS BAXTER
• RFU REGIONAL FUNDING FACILITY MANAGER

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BACKGROUND

• NOVEMBER 2001 ANNOUNCEMENT THAT CHARITY
  COMMISSION WOULD RECOGNISE AS CHARITABLE THE
  PROMOTION OF COMMUNITY PARTICIPATION IN HEALTHY
  RECREATION BY PROVIDING FACILITIES FOR PLAYING
  PARTICULAR SPORTS.
• FINANCE ACT 2002 ESTABLISHED CASCS WITH RANGE
  OF TAX RELIEFS.
• RFU ISSUED DETAILED GUIDELINES NOVEMBER 2002.
• SEPTEMBER 2003 GOVERNMENT ANNOUNCED THAT
  REGISTERED CASCS WILL BE ELIGIBLE FOR MRR.
• 270 CLUBS REGISTERED AS A CASC

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LEGISLATION, ETC

• SCHEDULE 18 OF FINANCE ACT 2002 INTRODUCED CASCS.
• REGISTRATION IS DE FACTO PROCESS WITH INLAND
  REVENUE.
• REGISTRATION IS EXTREMELY STRAIGHTFORWARD - CASC
  3 AND CASC 4 FORMS.

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CRITERIA

• OPEN MEMBERSHIP
• CLUB MUST BE OPEN TO WHOLE COMMUNITY WITHOUT
  DISCRIMINATION
• FEES MUST BE AFFORDABLE.
• CLUB MUST BE AMATEUR
• CANT DISTRIBUTE ASSETS/SURPLUSES
• CAN ONLY PROVIDE ORDINARY BENEFITS OF
  MEMBERSHIP
• CONSTITUTION MUST REQUIRE ASSETS ON DISSOLUTION
  BE APPLIED FOR SIMILAR PURPOSES
• PURPOSE OF CLUB TO PROVIDE FACILITIES FOR RUGBY.

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TAX BENEFITS CORPORATION TAX

• EXEMPTION ON TRADING INCOME WHERE INCOME IS LESS
  THAN 30K PA
• EXEMPTION ON INCOME FROM PROPERTY WHERE INCOME IS
  LESS THAN 20K PA
• EXEMPTION ON INTEREST RECEIVABLE AND GIFT-AID
  INCOME
• EXEMPTION ON CHARGEABLE CAPITAL GAINS

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TAX BENEFITS DONATIONS

• INDIVIDUALS CAN MAKE CASH DONATION TO CASCS UNDER
  GIFT AID -28P RETURN IN
• INDIVIDUALS CAN GET RELIEF FROM INHERITANCE TAX
  ON GIFTS
• COMPANIES CAN GET RELIEF ON GIFTS OF GOODS AND
  EQUIPMENT
• INDIVIDUALS AND COMPANIES CAN AVOID TAXABLE
  CAPITAL GAIN ON GIFTS OF CHARGEABLE ASSETS

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TAX BENEFITS OPPORTUNITIES

• AVOIDANCE OF CGT LIABILITY ON SALE OF LAND
• INDIVIDUAL DONATIONS
• 67 INCREASE FOR HIGHER RATE TAX PAYER
• FUND RAISING EVENTS
• SUBSCRIPTIONS
• SPONSORED EVENTS
• FUND-RAISING EVENTS
• AUCTIONS
• LEGACIES

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TAX BENEFITS MANDATORY RATE RELIEF

• INTRODUCED IN 2003 LOCAL GOVERNMENT ACT
• REGISTERED CASCS QUALIFY FOR 80 MRR
• EFFECTIVE 1 APRIL 2004

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ISSUES

• CLUB CONSTITUTION / MODEL RULES
• DEREGISTRATION PROVISIONS CAN TRIGGER GCT
  LIABILITY

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Where Next?

• http//www.cascinfo.co.uk/
• Further Information and case studies
• Relevant application forms
• Steps to achieving CASC status

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RUGBY FOOTBALL UNION

• ROSS BAXTERREGIONAL FUNDING FACILITY MANAGER
• ROSSBAXTER_at_RFU.COM
• 07764960405