Business Rate Benefits to Sports Clubs
Many local authorities currently grant discretionary business rates relief to local sports clubs within their area. However, through encouraging local sports clubs to register as Community Amateur Sports Clubs (CASC) under the HMRC administered scheme, local authorities can actually save money due to an increased level of central funding given to rates relief provided to these clubs.
Under the CASC scheme, local sports clubs automatically receive 80 per cent mandatory rate relief, all of which is centrally funded. In addition to this, local authorities may choose to provide a further 20 per cent discretionary rate relief, of which 25 per cent is centrally funded.
Therefore, a CASC receiving 100 per cent business rates relief, will only result in 15 per cent of this cost being funded by the local authority. Additionally, to register as a CASC a club must allow membership without discrimination, ensuring the club is open for all in the community.
The examples below, illustrate these benefits to both local authorities and sports clubs.
|
Type of Relief |
Amount of Relief |
Central Contribution |
Borne Locally |
CASC registered club |
Mandatory |
80% |
100% |
- |
|
Discretionary |
Up to 20% |
25% |
75% |
Non-registered club |
Discretionary |
Up to 100% |
75% |
25% |
With these figures in mind; below is a comparison of the potential savings made by a local authority and a local sports club with an annual business rates bill of £5,000 when provided with:
a) 80 per cent business rates relief as a non-CASC; and
b) 100 per cent (80 per cent mandatory and 20 per cent discretionary) rates relief as a CASC:
|
Rates cost to: |
|
|
|
Club |
Local Authority |
Total cost to Club & Local Authority |
Central Contribution |
a) Non-registered club (80% relief) |
£1,000 |
£1,000 |
£2,000 |
£3,000 |
b) CASC registered club (100% relief) |
£0 |
£750 |
£750 |
£4,250 |
Saving |
£1,000 |
£250 |
|
|
What your Local Authority can do to promote the CASC scheme:
- Provide a hyperlink on your website to the CASC dedicated website www.cascinfo.co.uk
- Provide an explanation of mandatory rates relief on your website
- Promote the scheme to your local authority sports development officers
- Run a series of runningsports seminars for clubs in your area on the CASC scheme
- Ensure all clubs in your area are aware of the scheme and have explored it as an option for their club.
For more information please visit www.cascinfo.co.uk or alternatively contact CCPR on 020 7976 3900
Richard Baldwin - Chair
CASC Development Forum
