Meaning of trade: mutual trading and members clubs: distributions: introduction and layout of guidance: contents
It follows from first principles that distributions out of the surpluses from mutual trading to members by a continuing mutual concern (corporate or non-corporate) are trading receipts where the member who receives them does so because of the trade they carry on - see BIM24555. In addition there are two statutory provisions:
S1070 Corporation Tax Act 2010
There is guidance at BIM24565.
S104 Income Tax (Trading and Other Income) Act 2005, S101 Corporation Tax Act 2009
There is detailed guidance at BIM24600 onwards.
The following guidance covers:
BIM24555Distributions: the basic approach
BIM24560Distributions: dividends from a co-operative etc society
BIM24565Distributions: S1070 Corporation Tax Act 2010
BIM24600Distributions: on winding-up
BIM24605Distributions on winding-up: taxable on first principles or statute
BIM24615Distributions on winding-up: statute: what is taxed?