BIM24230 - Meaning of trade: mutual trading and members clubs: members바카라 사이트 clubs: Tax Bulletin article on temporary membership
The subject of temporary club membership was discussed in an article in Tax Bulletin 12, the text of which is now included below.
Temporary club membership
We have been asked whether non-proprietary members바카라 사이트 golf clubs are liable to tax on trading income such as visitors바카라 사이트 green fees. This article gives our views on when income received by members바카라 사이트 clubs for the use of their facilities by non-members is taxable trading income.
Any surplus arising to a members바카라 사이트 club from transactions with its members is not normally taxable. Payments by members in respect of their personal guests [see BIM24220 for interpretation of this term], even when these are described as `visitors바카라 사이트 fees바카라 사이트 are normally regarded as part of that surplus.
But receipts from visitors who, in return for payment on a commercial basis, are allowed to use a club바카라 사이트s facilities will be receipts from a taxable trade in the club바카라 사이트s hands. This applies to individuals who arrive at a club to use its facilities on a casual basis and to groups who may book in advance.
Such visitors may become 바카라 사이트temporary members바카라 사이트 of the club. But this will not prevent receipts from their use of the club바카라 사이트s facilities from being taken into account for tax unless their rights as temporary members (such as rights to vote at meetings, participate fully in club activities and generally to exercise control over the running of the club), and the opportunities to exercise them, are similar to those of full members. In computing the taxable income derived from non-members in this way the related expenses will be deductible, including a reasonable proportion of course overheads.