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Official guidance
Business Income Manual

BIM24650 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: introduction

  • BIM24655 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: NHS doctors' co-operatives: introduction and layout of guidance
  • BIM24660 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: NHS doctors’ co-operatives: essential pre-requisite
  • BIM24665 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: NHS doctors’ co-operatives: does the trade meet the criteria?
  • BIM24670 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: NHS doctors’ co-operatives: varieties
  • BIM24675 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: NHS doctors’ co-operatives: National Association of GP co-operatives
  • BIM24680 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: mutual health insurers: introduction and layout of guidance
  • BIM24685 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: mutual health insurers: background
  • BIM24690 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: mutual health insurers: two interrelated questions
  • BIM24695 · Meaning of trade: Mutual trading and members clubs: mutual associations: specific activities: mutual health insurers: are they trading?
  • BIM24700 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: mutual health insurers: is the trade mutual?
  • BIM24705 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: agricultural co-operatives: introduction and layout of guidance
  • BIM24710 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: agricultural co-operatives: background
  • BIM24715 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: agricultural co-operatives: model constitution
  • BIM24720 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: agricultural co-operatives - three points to watch
  • BIM24725 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: agricultural co-operatives - financing
  • BIM24730 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: agricultural co-operatives - tax treatment
  • BIM24735 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: agricultural co-operatives - not conducting a mutual trade
  • BIM24740 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: agricultural co-operatives - members taxation
  • BIM24745 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: agricultural co-operatives - futures dealing
  • BIM24750 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: Chambers of Commerce - introduction and layout of guidance
  • BIM24755 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: Chambers of Commerce - trading?
  • BIM24760 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: Chambers of Commerce - a mutual trade?
  • BIM24765 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: Hunt point to point meetings - introduction and layout of guidance
  • BIM24775 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: Hunt point-to-point meetings - trading?
  • BIM24780 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: Hunt point-to-point meetings - dealings with members
  • BIM24782 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: property management companies
  • BIM24784 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: bulk buying groups - introduction and layout of guidance
  • BIM24786 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: bulk buying groups - basic principles
  • BIM24788 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: bulk buying groups - two relationships
  • BIM24792 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: voluntary organisations and charities, fund-raising events - introduction and layout of guidance
  • BIM24794 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: voluntary organisations and charities - tax exemption
  • BIM24795 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: voluntary organisations and charities - conditions for exemption
  • BIM24796 · Meaning of trade: Mutual trading and members clubs: mutual associations: specific activities: voluntary organisations and charities - donations etc. not chargeable
  • BIM24797 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: voluntary organisations and charities - reference to Specialist PT Charities
  • BIM24800 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: trade protection associations - introduction and layout of guidance
  • BIM24805 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: trade protection associations - HMRC arrangement
  • BIM24810 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: trade protection associations: procedural points when adopting HMRC arrangement
  • BIM24815 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: trade protection associations: benefits to members of adopting HMRC arrangement
  • BIM24820 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: trade protection associations: text of HMRC arrangement
  • BIM24850 · Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: marketing boards
  1. Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: introduction: contents
  2. Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: agricultural co-operatives: introduction and layout of guidance

BIM24705 | Meaning of trade: mutual trading and members clubs: mutual associations: specific activities: agricultural co-operatives: introduction and layout of guidance

From HM Revenue & Customs · Business Income Manual

Over the years farmers, market gardeners and fishermen have set up co-operatives. These co-operatives provide a variety of facilities to their members including:

  • acting as marketing agents for members’ produce

  • providing facilities for members (for example, grain storage/drying) and

  • bulk-buying operations for members.

Governments have in the past encouraged this process through the Central Council for Agricultural and Horticultural Co-operation (CCAHC), later called Food from Britain.

The following guidance covers:

BIM24710Background
BIM24715Model constitution
BIM24720Points to watch
BIM24725Financing
BIM24730Taxation of agricultural co-operatives
BIM24735Position if not conducting a mutual trade
BIM24740Taxation of the co-operative’s members
BIM24745Futures dealing

You should establish whether the agricultural co-operative’s constitution says that:

  • only members can use the facilities and services the co-operative provides,

  • the co-operative is a marketing agency,

  • the co-operative sells on behalf of the growers and never owns the produce,

  • members agree to market a certain amount of produce through the co-operative or provide a certain amount for processing,

  • any surplus is shared out among members according to the amount of business they have done with the co-operative recently.

If a co-operative buys produce from members who grow it, then sells it to a third party, the trade is not mutual. However, if a co-operative sells the produce as an agent for the members and makes a surplus from the service, the trade is mutual as long as it passes the other tests for mutuality - see BIM24100.

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