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HMRC internal manual

Company Taxation Manual

Particular bodies: investment clubs

An investment club normally comprises a group of friends, neighbours or work colleagues who pool resources to buy and sell shares on the stock market. It will normally be an unincorporated association. As such, it falls within the definition of company for tax purposes at CTA10/S1123 (1).

But investment clubs generally hold funds in a fiduciary capacity and consequently are outside the corporation tax charge - see CTA09/S3 (2). It follows that there is no need to set up a CT record or issue any CTSA returns in most cases. Individual members are instead charged to tax on their proportionate share of any income or capital gains and are entitled to relief in respect of their share of any capital losses.

There is more detailed guidance on investment clubs, and the procedures to be followed in respect of them, at CG20600 onwards.

Refer any club which, exceptionally, may be within the scope of CT to CTIS (Technical) - see ‘Technical Help’ on the left bar.