Newsletter 2 — June 2023
Published 23 June 2023
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1. Restriction of tax reliefs
At Spring Budget 2023, the government announced that, with effect from 15 March 2023, tax reliefs and exemptions for community and amateur sports clubs (CASCs) will be restricted to UK CASCs.
Any non-UK CASCs that were registered with HMRC for tax reliefs and exemptions as of 15 March 2023, will continue to be able to claim these until 5 April 2024.
The taxes affected are Income Tax, Capital Gains Tax, Corporation Tax, Inheritance Tax, Stamp Duty, Stamp Duty Land Tax, Stamp Duty Reserve Tax, Annual Tax on Enveloped Dwellings and Diverted Profits Tax.
Read more information on the restriction of charitable reliefs to UK community and amateur sports clubs.
2. Charity compliance consultation
At Tax Administration and Maintenance Day on 27 April 2023, it was announced that HMRC will consult on reform of the tax rules to help tackle non-compliance, whilst protecting the integrity of the sector.
For CASCs to benefit from the tax reliefs that they are eligible for, certain rules must be met. However, some of these rules are not working as intended.
HMRC will work with CASCs to explore reasonable and proportionate changes to the rules. Engagement with the sector will allow HMRC to understand any potential administrative or financial impact on CASCs that may arise because of any changes made.
The measures being considered that are relevant to CASCs include:
- reviewing the rules around preventing donors and connected persons from obtaining a financial benefit from their donation
- the possibility of sanctioning CASCs that do not meet their filing and payment obligations
Find more information on the charity tax compliance consultation.
3. Future of Gift Aid
At Tax Administration and Maintenance Day, on 27 April 2023, it was announced that HMRC will continue to engage with the CASCs sector to improve the way that Gift Aid works by using digital technology to minimise administrative burdens. HMRC are currently looking at how the Gift Aid service can be improved for everyone who uses it.
We will review the current processes for claiming Gift Aid that are used by CASCs. This review will also include looking at the viability and desirability of new systems and better use of digital technology and online services. This is to help donors better understand the rules and simplify the process of claiming Gift Aid.
4. Reminders
4.1 Updating your details
You should use the Charities: change of details form (ChV1) to tell HMRC about any changes to your CASC, such as new officials or a change of bank account.