Do golf clubs pay Corporation Tax?
Short version. A members’ golf club can owe Corporation Tax even if it is not incorporated. Commercial visitor income, property income and bank interest need to be considered. Being a members’ club does not make all income exempt.
1. Visitor income and related costs
Commercial fees from visitors and temporary members normally count as trading income. Calling a visitor a temporary member does not make the payment exempt. HMRC allows related expenses, including a reasonable proportion of course overheads, when calculating the taxable profit. Payments by members for their personal guests can have different treatment. See HMRC’s guidance on visitors and restricted membership.
For example, prepared figures of £20,000 taxable visitor receipts and £15,000 related costs give £5,000 profit before further tax adjustments. This is the result for those activities. It need not equal the surplus in the whole club’s accounts.
2. Mutual trading and CASCs
Mutual trading depends on the club’s legal framework and qualifying transactions with its members. It is not an exemption for every receipt labelled a subscription. Mutual trading surpluses are outside the tax charge, but mutual losses do not get tax relief. Other income, including rent and bank interest, remains relevant. See HMRC’s mutual trading guidance.
A registered community amateur sports club (CASC) uses a separate exemption regime. Do not apply the ordinary mutual trading treatment to a CASC. The trading and property exemptions have limits and conditions. Read CASC returns and tax relief and HMRC’s CASC tax guidance.
3. Accounts and the return
Keep the accounts and the tax computation distinct. The computation explains the figures included for tax and the adjustments. See club accounts, PDF attachments and CT600 box 90. An accounts period longer than 12 months can need two returns. Read how club figures are split between returns.
When the club option is available in SimpleCompanyTax, follow the club filing guide. This is general guidance, not a decision on your club’s tax treatment. Use the official rules when preparing your figures.