Blairgowrie Golf Club has teed-up a £550,000 VAT windfall.
It’s the upshot of a long-running fight golf clubs across the UK have had with the Tax Man.
Private member clubs, including the 2014 Junior Ryder Cup venue, have been waiting for HMRC rebate cheques since the tax authorities lost a court test case over historic VAT charged on visitor fees dating back to the mid-nineties.
But while welcoming the six-figure boost to the coffers in advance of a December 1 AGM, Blairgowrie’s managing secretary Douglas Cleeton warned rebates can’t be allowed to mask the challenges facing golf in Scotland.
He said: “It’s a wonderful and significant windfall for us and we will be considering carefully how it will be invested.
“We won’t be the biggest beneficiaries in Scotland, not by a long way.
“At the top end of the market, there are clubs with exceptionally big visitor numbers which will be getting more than £1 million.
“The vast majority, of course, will be getting a windfall which is much more modest.
“For many clubs struggling to survive in the current climate the VAT windfall will be a lifesaver, especially at this time of year.
“It may take the immediate pressure off and dig some clubs out of a hole for a year or two.
“But no one can afford to think a rebate will be a quick fix solution to all their problems, especially with VAT recoverable on capital projects and essential machinery now down to 14% as opposed to 100% only 25 or 30 years ago.
“The Tax Man will get his money back over the long term.”
Nearby Glenisla is closing at the end of the month and other Big County clubs are struggling to balance the books and restructuring their set-up to slash costs.
Mr Cleeton said: “Across Scotland we are seeing golf club membership on the slide, visitors looking for the best possible deals and bar revenue falling. So you have to be on top of your game to keep things ticking over.
“Fortunately at Blairgowrie we haven’t been relying on private members clubs winning the long-running legal test case against HMRC.
“But now that we have the money in the bank the committee will be thinking carefully how to make the most of our welcome windfall.
“Several projects are under consideration for the long term benefit of the golf club and to provide a legacy for the future.”
Kevin Fish, Club Services Manager for Scottish Golf, said: “The long-awaited conclusion of these various VAT legal challenges is a most welcome boost for many Scottish clubs who have been temporarily out of pocket but such a windfall should not distract club committees from the responsibility they have to ensure that they continue to offer a product, a service and an experience that appeals to the modern golfer.
“We would point out, however, that you don’t have to have received a large windfall to make significant improvements in the experience you provide golfers.
“Scottish Golf continues to provide education and face-to-face support to hundreds of Club Managers to help their golf clubs to thrive in these challenging economic times.”
