Bodies of Persons: Taxable Income and Member Receipts

Key requirements

The source states a 17% rate from YA 2020. A club’s voting members exercising effective control are relevant to the receipts test. Where at least 50% of gross revenue receipts come from members, the club is not deemed to trade, but other income from non-member dealings may remain taxable. Below 50%, its operating surplus and other taxable income fall within taxation. Do not classify all subscribers as members without applying the definition. Keep accounts and file Form P1 by 15 April, paying assessments within one month. Other body categories have their own rules, so the club’s 50% test is not a universal exemption for every association.