BIM24000 - Meaning of trade: mutual trading and members clubs: contents

Mutual trading is an important concept because a mutual trader is not liable to tax on any profits arising from their mutual trade. This is as a result of the principle that ‘a person cannot trade with themselves’. This section of the guidance discusses the essential requirements for a trade to be mutual and the case law from which those requirements are derived. The section also discusses a number of matters under the broad heading of mutual trading that are not mutual trading as such but which frequently involve a mutual association, including the treatment of members’ clubs and certain co-operatives and associations.

A full list of the contents of the guidance on mutual trading is shown below. The guidance is subdivided into sections, the opening page of each section being in bold in the list below. Please click on the page number alongside to go direct to each section.

1. BIM24001

   Overview
2. BIM24005

   Layout of guidance
3. BIM24010

   Income derived solely from members’ contributions and subscriptions
4. BIM24015

   Introduction: basic considerations: contents
5. BIM24020

   Introduction: characteristics
6. BIM24025

   Introduction: origins of the concept
7. BIM24027

   Introduction: early attempt at taxing surplus
8. BIM24030

   Introduction: founding principles
9. BIM24035

   Introduction: two early mutual insurance cases
10. BIM24040

    Introduction: further early mutual insurance cases
11. BIM24045

    Introduction: essential that the activity is a trade
12. BIM24100

    Essential requirements: contents
13. BIM24105

    Essential requirements: contributors to and participators in a surplus must be identical
14. BIM24110

    Essential requirements: surplus must go back to contributors
15. BIM24115

    Essential requirements: return of surplus contributions
16. BIM24120

    Essential requirements: members must control the common fund
17. BIM24150

    Non-mutual insurance trading activities: contents
18. BIM24155

    Non-mutual insurance trading activities: corporation water works
19. BIM24160

    Non-mutual insurance trading activities: corn trading association
20. BIM24200

    Members’ clubs: layout of guidance: contents
21. BIM24205

    Members' clubs: introduction
22. BIM24210

    Members’ clubs: distinction between proprietary and members’ clubs
23. BIM24215

    Members' clubs: Tax Bulletin article
24. BIM24220

    Members' clubs: classes of club membership
25. BIM24225

    Members’ clubs: temporary membership
26. BIM24230

    Members’ clubs: Tax Bulletin article on temporary membership
27. BIM24235

    Members’ clubs: voting rights
28. BIM24240

    Members' clubs: different forms of club
29. BIM24245

    Members' clubs: incorporated as industrial & provident societies
30. BIM24250

    Members' clubs: incorporated as limited company
31. BIM24255

    Members' clubs: incorporated as limited company: conditions to be satisfied for members’ club treatment
32. BIM24260

    Members' clubs: incorporated as limited company: shareholder inequality
33. BIM24300

    Members' clubs: guidance for customers
34. BIM24305

    Members' clubs: interest paid or received
35. BIM24315

    Members' clubs: commission income
36. BIM24320

    Members' clubs: community associations
37. BIM24325

    Community amateur sports: contents
38. BIM24330

    Community amateur sports clubs: relief available on a claim
39. BIM24335

    Community amateur sports clubs: conditions for registration
40. BIM24345

    Cricket clubs
41. BIM24350

    Golf clubs: introduction
42. BIM24360

    Golf clubs: computation of profit
43. BIM24365

    Rugby clubs: introduction
44. BIM24370

    Rugby clubs: Rugby Football Union (RFU) booklet
45. BIM24400

    Incorporation: contents
46. BIM24405

    Incorporation: difficulties associated with having shareholders
47. BIM24410

    Incorporation: a company trading only with its members may be non-mutual
48. BIM24450

    Allowable expenditure: contents
49. BIM24455

    Allowable expenditure: trades that are partly non-mutual
50. BIM24460

    Allowable expenditure: apportionment of mixed expenditure
51. BIM24465

    Allowable expenditure: judicial guidance on apportionment
52. BIM24470

    Allowable expenditure: members golf clubs: is intention relevant?
53. BIM24475

    Allowable expenditure: the ‘Peterhead’ principle
54. BIM24480

    Allocation of income: introduction and layout of guidance: contents
55. BIM24485

    Allocation of income: nature of activities
56. BIM24490

    Allocation of income: income from contributors
57. BIM24495

    Allocation of income: income from non-contributors
58. BIM24500

    Allocation of income: mixed income
59. BIM24505

    Allocation of income: sundry income
60. BIM24550

    Distributions: introduction and layout of guidance: contents
61. BIM24555

    Distributions: the basic approach
62. BIM24560

    Distributions: dividends from a co-operative etc society
63. BIM24565

    Distributions: S1070 Corporation Tax Act 2010
64. BIM24600

    Distributions: on winding-up
65. BIM24605

    Distributions on winding-up: taxable on first principles or statute
66. BIM24615

    Distributions on winding-up: statute: what is taxed?
67. BIM24650

    Mutual associations: specific activities: introduction: contents
68. BIM24655

    Mutual associations: specific activities: NHS doctors' co-operatives
69. BIM24660

    Mutual associations: specific activities: NHS doctors' co-operatives: essential pre-requisite
70. BIM24665

    Mutual associations: specific activities: NHS doctors' co-operatives: essential pre-requisite: does the trade meet the criteria?
71. BIM24670

    Mutual associations: specific activities: NHS doctors’ co-operatives: varieties
72. BIM24675

    Mutual associations: specific activities: NHS doctors’ co-operatives: National Association of GP co-operatives
73. BIM24680

    Mutual associations: specific activities: mutual health insurers: introduction and layout of guidance
74. BIM24685

    Mutual associations: specific activities: mutual health insurers: background
75. BIM24690

    Mutual associations: specific activities: mutual health insurers: two interrelated questions
76. BIM24695

    Mutual associations: specific activities: mutual health insurers: are they trading?
77. BIM24700

    Mutual associations: specific activities: mutual health insurers: is the trade mutual?
78. BIM24705

    Mutual associations: specific activities: agricultural co-operatives: introduction and layout of guidance
79. BIM24710

    Mutual associations: specific activities: agricultural co-operatives: background
80. BIM24715

    Mutual associations: specific activities: agricultural co-operatives: model constitution
81. BIM24720

    Mutual associations: specific activities: agricultural co-operatives: three points to watch
82. BIM24725

    Mutual associations: specific activities: agricultural co-operatives: financing
83. BIM24730

    Mutual associations: specific activities: agricultural co-operatives: taxation of
84. BIM24735

    Mutual associations: specific activities: agricultural co-operatives: not conducting a mutual trade
85. BIM24740

    Mutual associations: specific activities: agricultural co-operatives: members taxation
86. BIM24745

    Mutual associations: specific activities: agricultural co-operatives: futures dealing
87. BIM24750

    Mutual associations: specific activities: Chambers of Commerce: introduction
88. BIM24755

    Mutual associations: specific activities: Chambers of Commerce: trading?
89. BIM24760

    Mutual associations: specific activities: Chambers of Commerce: a mutual trade?
90. BIM24765

    Mutual associations: specific activities: Hunt point to point meetings: introduction and layout of guidance
91. BIM24775

    Mutual associations: specific activities: Hunt point-to-point meetings: trading?
92. BIM24780

    Mutual associations: specific activities: Hunt point-to-point meetings: dealings with members
93. BIM24782

    Mutual associations: specific activities: property management companies
94. BIM24784

    Mutual associations: specific activities: bulk buying groups: introduction
95. BIM24786

    Mutual associations: specific activities: bulk buying groups: basic principles
96. BIM24788

    Mutual associations: specific activities: bulk buying groups: two relationships
97. BIM24792

    Mutual associations: specific activities: voluntary organisations & charities: fund-raising events: introduction and layout of guidance
98. BIM24794

    Mutual associations: specific activities: voluntary organisations & charities: tax exemption
99. BIM24795

    Mutual associations: specific activities: voluntary organisations & charities: conditions for exemption
100. BIM24796

     Mutual associations: specific activities: voluntary organisations & charities: donations etc. not chargeable
101. BIM24797

     Mutual associations: specific activities: voluntary organisations & charities: reference to Specialist PT Charities
102. BIM24800

     Mutual associations: specific activities: trade protection associations: introduction
103. BIM24805

     Mutual associations: specific activities: trade protection associations: HMRC arrangement
104. BIM24810

     Mutual associations: specific activities: trade protection associations: procedural points when adopting HMRC arrangement
105. BIM24815

     Mutual associations: specific activities: trade protection associations: benefits to members of adopting HMRC arrangement
106. BIM24820

     Mutual associations: specific activities: trade protection associations: text of HMRC arrangement
107. BIM24850

     Mutual associations: specific activities: marketing boards
108. BIM24950

     Deductibility of payment made by contributor to a mutual trader
109. BIM24995

     Tax cases referred to in guidance