In a qualifying club there is technically no retail sale when selling alcohol (except to guests) as the member owns part of the alcohol stock and money passing over the bar is to preserve equity between members where one may consume more than another.
To be a qualifying club, you must satisfy the various requirements set out in the Licensing Act 2003:
- There must be at least two days interval between a member’s nomination / application for membership and their admission.
- There must be at least 25 members.
- The club must be established and conducted in ‘good faith’ (this involves consideration of details such as club finances).
Qualifying club activities are defined as:
- supply of alcohol by or on behalf of a club to a member of a club
- sale of alcohol by retail by or on behalf of a club to a guest of a member for consumption on the premises
- provision of regulated entertainment by or on behalf of a club for its members and guests.