I act for a car club which is a Members Club. The club does not trade. All the subscriptions are used to fund events for their own recreational purposes. No tax liability so far.
My concern is that the club has received donations from Insurance companies. These are related to members of the club who apply for insurance and show the insurance company their club membership. The Insurance Company then pays the Members Club a small referral amount.
Should this be classed as investment income of the club and declared on a corporation tax return?
Or is it just the discount on the normal insurance charge given as a discount, but paid to the club instead of the member, and therefore additional funds for the benefit of all the members?
Or is it classed as a donation of money and non-taxable?