07 Jan Can a CASC register as a Charity?
We received the following query from a cycling club today – “Can our CASC registered club register as a charity?”
A Community Amateur Sports Club (CASC) cannot directly register to become a charity but the club can deregister as a CASC and move its assets without penalty to a newly formed registered charity.
The club will need to ensure that it follows the following process to avoid any taxation issues:
- The club should set up and register the new charity (or Charitable Incorporated Organisation (CIO) if wanting to also be incorporated)
- The club should then apply to HMRC for recognition as a charity for tax purposes
- Once recognised, the club should close down the CASC and transfer any assets to the charity
- Once this has been actioned, the club should confirm with HMRC the details of the transfer, who will then deregister the CASC with no penalty because the club has become a charity
By following the process as detailed, the club will convert to a charity without any tax penalties.
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