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BIM24400 | Meaning of trade: mutual trading and members clubs: incorporation: contents

From HM Revenue & Customs · Business Income Manual

Introduction and layout of guidance

An entity with a shareholding may find it more difficult to satisfy the conditions for mutual trading. This is because of the requirement that any surplus go back to contributors as contributors and not as shareholders.

The guidance that follows covers the effects of incorporation on the issue of mutual trading:

Contents2 entries

  1. BIM24405Meaning of trade: mutual trading and members clubs: incorporation: difficulties associated with having shareholders
  2. BIM24410Meaning of trade: mutual trading and members clubs: incorporation: a company trading only with its members may be non-mutual