CSE3420 | How the conditions are to be interpreted: Number of members and memberships: Are there any limits on the number of members a CSG can have?

memberships: Are there any limits on the number of members a CSG can have?

Each CSG must have two or more members. No upper limit is set. However the CSG must be able to monitor the position of all its members so the necessary checks can be carried out and, to claim exemption, must also be able to evidence that the conditions have been met.

Additionally, businesses and organisations can be members of more than one CSG if they so choose. This may occur where a single qualifying business or organisation requires a number of different specialist services in connection with its exempt or non-business activities and these are provided by different specialised CSGs.

A member may VAT group with its CSG (see CSE4220). However, if a purported CSG consists of only two members and one of those members is in the same VAT group as its CSG, then the test that there must be at least two members is not met. This is because the effect of VAT grouping is to treat its members (the CSG and the member grouped with it) as a single taxable person and therefore the CSG would have only one member (the member outside the VAT group).