"charitable" Social Club CT600 entries

"charitable" Social Club CT600 entries

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I'm completing the CT600 (& CT600E) of a social club (taking over from another accountancy firm). Previously the trade figures (running a bar for members & signed guests) have been entered on CT600E as exempt from CT. No problem there, but a few small points:
1. Where should I enter donations received (from individuals)? Last year there was a box on the "E" form for them, this year they've re-written the definition for that box and it seems to exclude the item. Do I continue to claim exemption, or does it have to go on the main return now?
2. Bank Interest is received net. Does the tax deducted count as CT paid, or as non-refundable income tax? Should I, for example, state the gross figure as DIII income on the main CT600, taxable at 19%, tax already paid 20%, balance repayable? (Not wanting to sound like a total dork here; I do know how to deal with int recd for individuals and ordinary companies, but am a bit iffy on charitable bodies).
Many thanks for your replies.

Tom Burrows

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By User deleted
04th Jan 2005 23:21

Charitable Club & CT
If the entity were a limited company then no tax should be deducted at source from interest received.
If tax has been deducted at source then it should be a credit against the entity's CT liability.
If the entity has an income from outside sources below the CT £10k nil rate band I would expect the tax deducted from interest to be repayable to the entity. A few years ago IR granted a concession that very small members clubs be exempt from filing CT returns in view of very few of them ever having an income in excess of the £10k CT profits exemption. In all cases however I suggest requesting IR written approval for non-completion of CT600's on a case by case basis.
I wonder if we are confusing the terminology here ? Is the entity a members club (so only mutual trading profit is not taxable) or is it an official charity. As an official charity usually I would expect none of the income to be taxable, whereas a members club would be taxable on income derived from non-members (eg. land rental, wayleaves, investment income, capital gains). With regard to mutual trading I once got IR to agree that a flat management company was effectively mutual trading so any profits earned from service charges would be free of CT as they would be used to cover future costs and were earned from members. If the club were of a sporting type, then look at the tax exemptions available to Community Amateur Sports Clubs.

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