Club membership is mainly a personal and social matter, giving rise to amenities and privileges limited to members. Any suggestion that the cost of membership of a club is deductible as a necessary expense incurred in the performance of the duties of the employment should normally be rejected.
The leading case is Brown v Bullock (40TC1). The case is
described at
EIM31647. It could not be said that the
taxpayer was performing the duties of his employment when paying
the subscription for the club.
The case of Elwood v Utitz (42TC482) is a very unusual
exception to this general rule. It was held that the benefits
obtained by the club subscription in that case were purely
incidental to the business purpose of the payment. The case is
described at
EIM31664.
If a membership fee is paid by an employer for a director or
employee within the benefits code see
EIM21696.
