VAT Rebate Update for CASC Clubs
HMRC is aware that some CASC registered golf clubs are currently awaiting VAT repayments following the Bridport & West Dorset European Court of Justice Decision.
These claims, relating to output tax that was paid on visitor green fees, are taxable as trading income from non-members. See the CASC Guidance Section 2.22. If the club does not pass the repayment back to the visitor then any surplus of non-member income, after the deduction of relevant expenses, will be liable to Corporation Tax. See Corporation Tax & VAT for CASCs.
A CASC can currently earn up to £100,000 from non-member trading and property income, which is called ‘the income condition’. If a club exceeds this limit, then they can be deregistered as a CASC, becoming liable for the associated penalties. See the CASC Guidance Section 6.
HMRC has now conceded that any taxable trading income, arising from the VAT repayment claims, can be excluded when a club is calculating how much non-member trading income they have for the purposes of the CASC income condition.
Small Business Rate Relief
England Golf have recently published advice on rates which could be applicable to many golf clubs in England. This can be found on their website by following this link: – England Golf Small Business Rates Relief.