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BIM24995 | Meaning of trade: mutual trading and members clubs: tax cases referred to in guidance

From HM Revenue & Customs · Business Income Manual

Alphabetical order by names of the party

The table below identifies the:

  1. principle established

  2. names of the parties

  3. BIM page, and

  4. Tax case reference

for each of the cases referred to in the guidance material on the mutual trading and related issues.

Principle establishedNames of the partiesPageTax case reference
Crucial factor is nature of transactionsAyrshire Employers Mutual Insurance Association Ltd v CIRBIM24027, BIM2410527 TC 331
No need for profit seeking motiveBrighton College v MarriottBIM2404510 TC 213
Deduction for costs saved by members’ servicesBritish Legion, Peterhead Branch, Remembrance and Welcome Home Fund v CIRBIM24475, BIM24775, BIM24794,BIM2479635 TC 509
Distribution by Mutual concern in winding upBrogan v Stafford Coal & Iron Co LtdBIM24550, BIM2460041 TC 305
Apportionment of expensesCarlisle & Silloth Golf Club v SmithBIM24210, BIM24360, BIM24460, BIM24465, BIM24470,6 TC 48 & 198
‘Not for profit’ does not preclude tradingCIR v Hyndland Investment Co LtdBIM2404514 TC 694
Whether tradingCIR v Livingston & OthersBIM2404511 TC 538
Difference between proprietary and members’ clubCIR v Stonehaven Recreation Ground TrusteesBIM2421015 TC 419
Is mutual insurance a trade?CIR v The Cornish Mutual Assurance Co LtdBIM24040, BIM24100, BIM2415512 TC 841
Difference between proprietary and members’ clubCIR v The Eccentric Club LtdBIM2421012 TC 669
-Dublin Corporation v M’AdamBIM240302 TC 387
Bulk buying group trading as principleEnglish & Scottish Joint Co-operative Wholesale Societies Ltd v The Commissioners of Agricultural Income Tax, AssamBIM24786, BIM247881948 AC 405
Whether tradingErichsen v LastBIM240454 TC 422
Contributors may come and goFaulconbridge v National Employers’ Mutual General Insurance Association LtdBIM24105, BIM2411033 TC 103
Control of a members’ clubFletcher v ITCBIM242351972 AC 414
Payments to trade protection associationsGrahamston Iron Co v CrawfordBIM248057 TC 25
Municipal water supplyHarris v Corporation of the Burgh of IrvineBIM241554 TC 221
Destination of profits has no bearing on assessibilityHutchinson & Co (Publishers) Ltd v TurnerBIM2447031 TC 495
Surplus must go back to contributors and no one elseJones v The South West Lancashire Coal Owners’ AssociationBIM24110, BIM24115, BIM2441011 TC 790
The practicalities of S54 Corporation Tax Act 2009 and S34 Income Tax (Trading and Other Income) Act 2005Korner v CIRBIM2446045 TC 287
-Last v The London Assurance CorporationBIM240352 TC 100
Effect of shareholdingLiverpool Corn Trade Association Ltd v MonksBIM24160, BIM2440510 TC 442
Payments to trade protection associationsLochgelly Iron and Coal Co Ltd v CrawfordBIM248056 TC 267
The practicalities of S54 Corporation Tax Act 2009 and S34 Income Tax (Trading and Other Income) Act 2005McLaren v MumfordBIM2446069 TC 173
What is mutual tradingMunicipal Mutual Insurance Ltd v HillsBIM24015, BIM24025, BIM24105, BIM2466516 TC 430
Co-operative dividendsPope v BeaumontBIM2456024 TC 78
Whether tradingRansom v HiggsBIM2404550 TC 1
Members must control the common fundRevesby Credit Union v The Commissioner of Taxation for the Commonwealth of AustraliaBIM24120112 CLR 564
Trading is not a question of motiveRoyal Agricultural Society of England v WilsonBIM240459 TC 62
The categories of income are exclusiveSalisbury House Estates Ltd v FryBIM2404015 TC 266
Can a taxpayer trade with themselvesSharkey v WernherBIM2403536 TC 275
Co-operative dividend satisfied by sharesStaffordshire Egg Producers Ltd v SpencerBIM2456041 TC 131
-Styles v New York Life Insurance CompanyBIM24035, BIM24040, BIM24100, BIM24155, BIM24160, BIM24210, BIM247882 TC 460
Members’ club only liable on profits from non-membersThe National Association of Local Government Officers v WatkinsBIM2421018 TC 499
Deductibility of trader’s payments to a mutual traderThomas v Richard Evans & Co LtdBIM2495011 TC 790
Control of a members’ clubWestbourne Supporters of Glentoran v BrennanBIM24225, BIM24120SPC 22
The practicalities of S54 Corporation Tax Act 2009 and S34 Income Tax (Trading and Other Income) Act 2005Wildbore v LukerBIM2446033 TC 46