Golf clubs across Scotland are look set to cash in on a windfall from the Taxman worth millions of pounds. An English club has won a tribunal after successfully arguing that income from visitor green fees should not be subject to VAT.

However, it should be pointed out that HM Revenue & Customs have up to 56 days to appeal this decision and as such clubs should continue to account for VAT on visitor green fee income until it has been confirmed it HMRC is going to appeal the decision or not.

Now many Scottish clubs who had lodged similar claims to that submitted to HMRC by Bridport and West Dorset GC are in line for refunds.

Gary Moore of Glasgow-based VAT Services (Scotland) Ltd has lodged 29 claims on behalf of his clients and expects payments to range from £3,000 up to £240,000. With interest these figures could almost double.

Gary said: “This is fantastic news for golf clubs. Like many organisations, they have found it tough in the recession and this will be a very welcome boost. We always believed there was a good chance of a successful outcome and we have spent a lot of time preparing and submitting claims for our clients.”

“It is not too late for clubs who have not yet taken action. The opportunity is still there to consider a claim only for the last four years. However, we should also point out while many clubs are set to benefit, not all will.”

The Tribunal ruling has been welcomed by the Scottish Golf Union and Scottish Ladies’ Golfing Association. Scottish Golf Development Manager, Andy Salmon said: “These repayments will be very warmly received by all those clubs that submitted claims to HMRC. The last three years have been very challenging for a variety of reasons and these payments, no matter how small, will provide a very timely boost to clubs seeking to provide their members and visiting golfers with great value. We strongly urge clubs to take professional VAT advice to ensure that they are realising any opportunity that might exist as a result of this ruling.”

Brian Duguid, Treasurer, Dumfries and County Golf Club, said “The windfall repayment from HMRC will be a very welcome injection of funds to the club which will aid the development programme the club has in place to continue with the ongoing improvements to the course and clubhouse facilities”.