Corporation Tax Act 2010 section 661CA

The income condition

Section 661CA sets out the income condition that a community amateur sports club must meet in order to qualify as a registered club, by limiting the combined total of its trading and property receipts to a specified threshold.

• A club meets the income condition if its combined trading receipts and property receipts do not exceed £100,000 in a 12-month accounting period (proportionally reduced for shorter periods)
• When calculating whether the threshold is exceeded, any exemptions that the club may have for UK trading income or UK property income are ignored — you look at the gross receipts before exemptions
• If a club becomes registered or ceases to be registered part way through an accounting period, the registered portion is treated as a separate accounting period and receipts are apportioned accordingly
• Trading income covers profits of a trade or any other activity (whether carried on wholly or partly in the UK), and property income covers income from both UK and overseas property businesses