Corporation tax on lottery income

Corporation tax on lottery income

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2 Rugby clubs.  1 is a casc one is not.

They both have a lottery running which members and non members participate in. The clubs are making a profit of say £20,000 each per year  on this.

I think the casc one does not need to pay corp tax on the profit and the other one does?

Any opinion on this would be appreciated.

Thansk

Replies (4)

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By petestar1969
24th Jul 2015 16:03

Well

If the club is paying CT on profits then it would need to pay CT on the lottery wins as they would be part of the club's profits.

 

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Replying to atleastisoundknowledgable...:
By djn24
27th Jul 2015 08:39

Never paid CT in the past

petestar1969 wrote:

If the club is paying CT on profits then it would need to pay CT on the lottery wins as they would be part of the club's profits.

 

The club has never paid CT on it's profits as they have all been generated by members and are reinvested into the club.  The lottery is mostly from non members.

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Replying to Martin B:
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By petestar1969
27th Jul 2015 09:23

So

djn24 wrote:

petestar1969 wrote:

If the club is paying CT on profits then it would need to pay CT on the lottery wins as they would be part of the club's profits.

 

The club has never paid CT on it's profits as they have all been generated by members and are reinvested into the club.  The lottery is mostly from non members.

 

I don't understand why you posed the question if you already knew the answer...

 

I was referring to the non-member club which presumably does makes profits.

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Replying to Glennzy:
By djn24
27th Jul 2015 09:33

?

[

I don't understand why you posed the question if you already knew the answer...

 

I was referring to the non-member club which presumably does makes profits.

[/quote] ?

I don't know the answer, otherwise you are right in that I wouldn't have asked the question.

My question is whether the lottery profits are taxable as they are mostly made from non members. Both clubs are member clubs but one is a casc.

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