Golfers' discount

12 November 2008

Issue: 4184 / Categories: Forum & Feedback

A golf club gives a discounted annual subscription to members who have loaned money to the club. Is this a 'benefit' that should be declared on a tax return or should the club be making a return to HMRC? The Business Income Manual provides guidance to mutual trading and other tax aspects relating to clubs

I am the treasurer of my local members' golf club which is registered under the community amateur sports club scheme. A number of members have loaned money to the club for which they receive a discount against their annual subscriptions such that if a member has loaned £1 000 he will receive an £80 annual discount and if a member has loaned £2 000 he will get a £160 annual discount. The loans are repayable in full at some time in the future at the club or member's discretion.

This loan facility is not available to non-members and the only benefit to the member is as a discount against his subscriptions. I have the following two questions:

Should the individual members receiving the discounts be declaring these on their tax returns and paying the appropriate tax?
Should the club be making a return to HMRC...

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