The income condition661CA

1

A club meets the income condition for the purposes of section 658 if the sum of—

a

the receipts brought into account in calculating the club’s trading income (“trading receipts”), and

b

the receipts brought into account in calculating the club’s property income (“property receipts”),

does not exceed the relevant threshold.

2

For the purposes of subsection (1), any exemption under section 662 (exemption for UK trading income) or 663 (exemption for UK property income)6 is to be ignored.

3

For the purposes of subsection (1), if in an accounting period (“period A”) a club becomes, or ceases to be, registered then—

a

the part of period A in which the club is registered is to be treated as a separate accounting period from the remainder of that period, and

b

the club’s trading receipts and property receipts for period A must be apportioned between those periods.

4

In this section—

• “property income” means income of a UK property business or an overseas property business,

• “the relevant threshold” means—

  1. a

     £100,000 in the case of an accounting period which is 12 months, and

  2. b

     a proportionally reduced amount in the case of a shorter accounting period, and

• “trading income” means profits which, if chargeable to corporation tax, would be chargeable under Chapter 2 of Part 3 of CTA 20097 and are—

  1. a

     profits of a trade, or

  2. b

     profits of an activity other than a trade,

whether or not that trade or activity is carried on wholly or partly in the United Kingdom.