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Exemption for Green Fees
Early June marked the publication of the Tribunal's decision in The Bridport and West Dorset Golf Club Ltd.
The decision concerned the VAT liability of Green Fees. HMRC have long held that these should be standard rated, as they do not include membership rights, since such income was treated as 'additional income' under European Law, which is excluded from exemption.
The Golf Club was the lead case for numerous other clubs. A leading firm of Accountants acted, ensuring good representation. Additionally, they raised two further questions:
- Whether claims could be granted back to 1996; and
- Whether compound interest was payable by HMRC
The Tribunal did not deal with these additional matters, as they are the subject of other cases.
Comment: if members' Golf Clubs receive Green Fees, now is the time to get claims in. Remember, Partial Exemption calculations will also have to be reviewed. However the sums could be substantial.
Bridport's claim was for £140,358.
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