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Official guidance
Company Taxation Manual

CTM40950 · Particular bodies: mutual concerns

  • CTM40955 · Particular Trades: mutual concerns: surplus from mutual trading not liable
  • CTM40960 · Particular Trades: mutual concerns: legal framework
  • CTM40965 · Particular Trades: mutual concerns: non-mutual transactions
  • CTM40970 · Particular Trades: mutual concerns: mutuality
  • CTM40975 · Particular Trades: mutual concerns: distributions
  • CTM40980 · Particular Trades: mutual concerns: co-operatives
  • CTM40985 · Particular Trades: mutual concerns: agricultural co- operatives
  1. Particular bodies: mutual concerns: contents
  2. Particular Trades: mutual concerns: agricultural co- operatives

CTM40985 | Particular Trades: mutual concerns: agricultural co- operatives

From HM Revenue & Customs · Company Taxation Manual

Agricultural co-operatives meet the criteria for mutual concerns if their constitution provides that only members can use the facilities and services they provide.

And if it is a marketing agency

  • it sells on behalf of the growers and never owns the produce,

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

  • 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.

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