Corporation Tax Act 2010 section 660A

Clubs consisting mainly of social members

Section 660A prevents a community amateur sports club from qualifying for tax relief if too many of its members are social members who do not actively participate in the club's sporting activities.

• A club fails the 'main purpose' test if its social members exceed a Treasury-specified percentage of total membership
• A social member is one who does not participate, or participates only occasionally, in the club's sporting activities
• The Treasury may make regulations defining what counts as sporting activities, what counts as participation, and what counts as only occasional participation
• Treasury regulations may include different provisions for different purposes and may have retrospective effect