A recent English Court decision has raised the possibility that visitor fees at non-proprietary golf clubs should not be subject to VAT. This could result in thousands of pounds of tax being reclaimed, not just by the club that brought the case against HM Revenue and Customs but by ‘members clubs’ up and down the country.
There is still the possibility that HMRC will appeal and so clubs are advised to continue to account for VAT on visitor income and not to start ‘spending’ the anticipated windfalls.
For proprietary clubs, of course, this news will be less than welcome. The different VAT rules that apply to them are already described as unfair and a distortion of competition.
Everyone in the golf business will want clarity on this point. Not just the clubs themselves but suppliers too – hoping that some of their clients will soon have substantial sums to spend.
GBN.com will, of course, bring you that news just as soon as it breaks, providing, as always, a service to our readers that is unequalled.
Keep checking those Daily Updates www.golfbusinessnews.com/2011/06
Geoff Russell, Editor