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.