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Will the formation of a subsidiary mean that golf club course fees suffer VAT?
We act for a golf club which is registered as a community amateur sports club (CASC). The accounts for recent years show that income from members and green fees paid by visitors just cover the cost of running the course and club. Any small surpluses are re-invested in the club’s facilities.
Annual green fees from visitors are approximately £200 000. Following the decision of the CJEU in The Bridport and West Dorset Golf Club Limited the club treats green fee income from visitors as exempt from VAT so visitors enjoy the same exemption benefit as the members.
As a result of the 2015 changes to the criteria for registration as a CASC the club is considering whether to form a trading subsidiary that will be a wholly owned by the club. The plan is that it will be a company limited by guarantee. The articles of association of...
