Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Business Income Manual

From
HM Revenue & Customs
Updated
, see all updates

Meaning of trade: mutual trading and members clubs: members' clubs: different forms of club

Members’ clubs can take many forms, unincorporated associations, companies limited by guarantee without share capital and clubs incorporated with a share capital (see BIM24255 for specific guidance on members’ clubs having a share capital).

Provided that use of a company structure is simply a means of enabling the members to conduct the social or recreational objectives of a members’ club incorporation does not by itself make any surplus in a members’ club taxable as trade profits.