Commentary

V2.112 Clubs, associations and organisations

Part V2 Registration – deregistration

V2.112 Clubs, associations and organisations

V2.112 Clubs, associations and organisations

Clubs, associations and organisations are collectively referred to in this paragraph as 'clubs' for the sake of brevity. The legislation refers to 'a club, association or organisation the affairs of which are managed by its members or a committee or committees of its members'1. The organisational structure of some clubs can give rise to a number of problems, several of which are set out below.

Determining the activity groups to include in a club's VAT registration

Where, for example, the premises of an unincorporated association are vested in trustees, the upkeep of the premises is the responsibility of the club committee, and they are used by a number of activity groups, which have ill-defined links with the club, it is necessary to determine whether the club registration is restricted to the club's activities, or whether it extends to those carried on by the activity groups. This must necessarily depend on the exact relationship between the various bodies. In Old Parkonians, the Tribunal2 extracted the following pointers from decided cases as to whether a club and related activity groups are one or separate legal entities:

  1.  

    •     the club's rules are determinative if clear and not a sham

  2.  

    •     the operation of two clubs as one for a temporary period in breach of the rules does not of itself make them a single entity,

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