The CASC consultation had more answers from golf than any other sport. Surprise, surprise. Following the consultation the Government pronounced that they wanted to do even more for sport and they have widened the options for CASC clubs. Instead of clamping down on the big clubs benefiting they have made things potentially worse.
Linked companies The real gem is that the rules now give CASC clubs corporation tax relief on trading of £100,000. But in order to ensure they can keep under this limit the new rules, once eased through the IMPs in Parliament, will encourage CASCs to have subsidiary companies to do the trading. These subsidiary companies could handle the catering, the hotel bit, weddings and conferences and keep themselves under the VAT threshold if necessary. Then they will be able to pop the profits from these subsidiary trading companies back into the CASC club, tax free as a form of Gift Aid.
Disaster? No it’s marvellous. Because just remember that HMRC won’t let a proprietary golf club have a subsidiary members’ club with VAT exempt membership fees. We can’t have linked companies. Now HMRC and the Government are positively suggesting CASC clubs do this. Whoops!
Read the proposed new rules.
Will – those reports are there. There is a large one with HMRC plastered on it. And an abbreviated one. NOTE: Viv please can you confirm the file names, I’m not clear which ones you want here – thanks!
Click here and read more: AGCO’s CASC Case to Europe