BIM24490 | Meaning of trade: mutual trading and members clubs: allocation of income: income from contributors (members)

Income from members falls into a number of broad categories:

• Subscriptions - for ordinary members this forms part of the non-taxable income arising from the club’s mutual activities; for temporary members or junior/honorary members, whose subscriptions subsidise those of ordinary members and whose rights are not equivalent to full members, this is taxable as trading income - see BIM24220, BIM24225 and BIM24240.

• From non-trading activities - this is not taxable as trading income. But remember that non-trading items are taxable in the normal way, for example rental income will be taxed under the property income rules.

• From trading activities where the conditions in BIM24020 are satisfied, this is not taxable on the basis that it derives from a mutual trade.