Business Income Manual

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

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 established	Names of the parties	Page	Tax case reference
Crucial factor is nature of transactions	Ayrshire Employers Mutual Insurance Association Ltd v CIR	BIM24027, BIM24105	27 TC 331
No need for profit seeking motive	Brighton College v Marriott	BIM24045	10 TC 213
Deduction for costs saved by members’ services	British Legion, Peterhead Branch, Remembrance and Welcome Home Fund v CIR	BIM24475, BIM24775, BIM24794,BIM24796	35 TC 509
Distribution by Mutual concern in winding up	Brogan v Stafford Coal & Iron Co Ltd	BIM24550, BIM24600	41 TC 305
Apportionment of expenses	Carlisle & Silloth Golf Club v Smith	BIM24210, BIM24360, BIM24460, BIM24465, BIM24470,	6 TC 48 & 198
‘Not for profit’ does not preclude trading	CIR v Hyndland Investment Co Ltd	BIM24045	14 TC 694
Whether trading	CIR v Livingston & Others	BIM24045	11 TC 538
Difference between proprietary and members’ club	CIR v Stonehaven Recreation Ground Trustees	BIM24210	15 TC 419
Is mutual insurance a trade?	CIR v The Cornish Mutual Assurance Co Ltd	BIM24040, BIM24100, BIM24155	12 TC 841
Difference between proprietary and members’ club	CIR v The Eccentric Club Ltd	BIM24210	12 TC 669
-	Dublin Corporation v M’Adam	BIM24030	2 TC 387
Bulk buying group trading as principle	English & Scottish Joint Co-operative Wholesale Societies Ltd v The Commissioners of Agricultural Income Tax, Assam	BIM24786, BIM24788	1948 AC 405
Whether trading	Erichsen v Last	BIM24045	4 TC 422
Contributors may come and go	Faulconbridge v National Employers’ Mutual General Insurance Association Ltd	BIM24105, BIM24110	33 TC 103
Control of a members’ club	Fletcher v ITC	BIM24235	1972 AC 414
Payments to trade protection associations	Grahamston Iron Co v Crawford	BIM24805	7 TC 25
Municipal water supply	Harris v Corporation of the Burgh of Irvine	BIM24155	4 TC 221
Destination of profits has no bearing on assessibility	Hutchinson & Co (Publishers) Ltd v Turner	BIM24470	31 TC 495
Surplus must go back to contributors and no one else	Jones v The South West Lancashire Coal Owners’ Association	BIM24110, BIM24115, BIM24410	11 TC 790
The practicalities of S54 Corporation Tax Act 2009 and S34 Income Tax (Trading and Other Income) Act 2005	Korner v CIR	BIM24460	45 TC 287
-	Last v The London Assurance Corporation	BIM24035	2 TC 100
Effect of shareholding	Liverpool Corn Trade Association Ltd v Monks	BIM24160, BIM24405	10 TC 442
Payments to trade protection associations	Lochgelly Iron and Coal Co Ltd v Crawford	BIM24805	6 TC 267
The practicalities of S54 Corporation Tax Act 2009 and S34 Income Tax (Trading and Other Income) Act 2005	McLaren v Mumford	BIM24460	69 TC 173
What is mutual trading	Municipal Mutual Insurance Ltd v Hills	BIM24015, BIM24025, BIM24105, BIM24665	16 TC 430
Co-operative dividends	Pope v Beaumont	BIM24560	24 TC 78
Whether trading	Ransom v Higgs	BIM24045	50 TC 1
Members must control the common fund	Revesby Credit Union v The Commissioner of Taxation for the Commonwealth of Australia	BIM24120	112 CLR 564
Trading is not a question of motive	Royal Agricultural Society of England v Wilson	BIM24045	9 TC 62
The categories of income are exclusive	Salisbury House Estates Ltd v Fry	BIM24040	15 TC 266
Can a taxpayer trade with themselves	Sharkey v Wernher	BIM24035	36 TC 275
Co-operative dividend satisfied by shares	Staffordshire Egg Producers Ltd v Spencer	BIM24560	41 TC 131
-	Styles v New York Life Insurance Company	BIM24035, BIM24040, BIM24100, BIM24155, BIM24160, BIM24210, BIM24788	2 TC 460
Members’ club only liable on profits from non-members	The National Association of Local Government Officers v Watkins	BIM24210	18 TC 499
Deductibility of trader’s payments to a mutual trader	Thomas v Richard Evans & Co Ltd	BIM24950	11 TC 790
Control of a members’ club	Westbourne Supporters of Glentoran v Brennan	BIM24225, BIM24120	SPC 22
The practicalities of S54 Corporation Tax Act 2009 and S34 Income Tax (Trading and Other Income) Act 2005	Wildbore v Luker	BIM24460	33 TC 46