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HMRC internal manual

Capital Gains Manual

Investment clubs: return of members' gains

The Treasurer, or other officer of the Club is responsible for computing the capital gain and letting each individual member know their share of income and gains for inclusion in the individual’s self-assessment tax return.

Individual club members are responsible for notifying HMRC of any income or gains received which may affect their liability to tax. Each member will have to show on his or her self assessment return their share of any gains arising on the disposal of the club’s investments, and of any income derived from the investments.

Form 185 can be used by Treasurers to show a member’s proportionate share of the club’s gains and income. Any reasonable method provided by the rules of the club for dividing gains between members should be accepted so long as it is based on the proportionate shares of the investments held by members and is consistently applied.

Supplies of Form 185 (PDF 208KB) can be downloaded from this guidance.

From April 2013 Treasurers are no longer required to make a return of members’ gains to HMRC by forwarding a copy of form 185, however sufficient records should be kept by the Treasurer or other officer who handles the club’s money as they may be required to make a return under FA11/SCH23/PARA65. The person(s) in whose name(s) the club’s investments are held may also be required to make a return under TMA70/s24.