From the FIFA World Cup to the Commonwealth Games returning to Glasgow, 2026 has once again demonstrated the power of sport to bring communities together.
While much of the attention has focused on elite athletes competing on the world stage, every sporting journey starts somewhere much closer to home, usually at a local club, community facility or volunteer-led organisation.
And for many people, the excitement generated by major sporting events extends beyond simply watching from the sidelines. Participation levels often increase after high-profile tournaments, with more people looking to get involved in sport locally, whether as players, coaches, volunteers or supporters.
As we look ahead to another summer of top-level sporting competition, it is worth remembering that many of the athletes and teams we will be cheering on began their journey at a local club. Whether it is football, athletics, swimming, netball, bowls, cycling or any other sport, grassroot clubs continue to play a vital role in developing talent and strengthening communities. Therefore, it is important that those involved in local grassroots sport take every opportunity to support their club’s future. This is where some advice on tax reliefs and charity legislation could prove very useful in terms of the club’s future finances – as well as its ability to produce a podium finish.
Local sports clubs can qualify for a variety of tax reliefs by registering as a charity or a community amateur sports club (CASC). The tax advantages can be especially valuable if you have ambitions to develop facilities such as your clubhouse.
Many sports clubs gain tax benefits by registering as a charity or CASC with HM Revenue & Customs (HMRC). Once registered, you can claim tax relief on income, gains and profits from some activities; Gift Aid repayment from donations; and business rates relief.
To register as a CASC, your club must:
- Promote participation and facilities for eligible sports – this must be the main purpose of the club, regardless of ability;
- Have a formal Constitution (which should be up to date);
- Be open to the whole community; and
- Be organised on an amateur basis.
To qualify as a charity, your sports club must demonstrate it furthers only charitable purposes and provides public benefit in achieving those purposes.
Many rugby, cricket and other sports clubs in Scotland gain additional benefits from registering as a charity, rather than a CASC. The tax benefits for charities are more extensive but there is slightly more regulation imposed.
The additional benefits from being a charity include:
- Special VAT treatment in some circumstances;
- Gifts of investments and land can be made by both individuals and companies with the benefit of income and corporation tax relief respectively; and
- The ability to raise funds from public grant-making trusts and local government may be easier than for non-charitable bodies.
One major potential advantage of charitable status is in relation to VAT on the construction of buildings. If, for example, your club wishes to develop its clubhouse, it would be worthwhile seeking professional advice on whether you could gain advantageous VAT treatment from being a charity.
However, the question is not always simply whether a club can access tax reliefs. As clubs grow and evolve, it is equally important to ensure that their governance arrangements remain fit for purpose. A review of a club's constitution, legal structure and regulatory status can help ensure it is well placed to attract funding, manage risk and support future development.
If you or your family do play sport locally, it’s well worth looking into whether your club is enjoying the benefits of being a charity or a CASC.
Some straightforward legal advice on the registration, compliance, governance or constitution could yield excellent results both on and off the pitch.
