Community Amateur Sports Clubs & Mutuality

by **Lawrence McAulay 01** on Mon Sep 05, 2011 11:59 am

My reading of the HMRC guidance on CASCs is that, in determining whether the £30,000 trading limit has been exceeded, only non-mutual trading profits need to be taken into account. To put it another way, the Club can ignore bar receipts from its members, for example. Is this the correct interpretation?

I ask because I found a post from a while back that seems to suggest that bar receipts from members are all exempt before the club becomes a CASC but that you have to rely on the £30,000 exemption for all trading (mutual and non-mutual) afterwards.

Also, does incorporating to a company limited by guarantee change the position regarding mutual and non-mutual trading?

Thank you.

by **Incredulum** on Mon Sep 05, 2011 3:05 pm

Also, does incorporating to a company limited by guarantee change the position regarding mutual and non-mutual trading

No it does not change it. Except that members of the club have to be members of the company - which just involves signing a piece of paper, guaranteeing £1 in the event of insolvent liquidation.