Commentary

B2.209 Assets of mutual concerns

Business tax
Business tax | Commentary

B2.209 Assets of mutual concerns

Business tax | Commentary

B2.209 Assets of mutual concerns

Traders or trading companies may make contributions to a mutual concern (for example a members' club or trade association) for the purposes of the mutual concern's business. The mutual concern will not be taxed on the profits of its mutual business. This will apply even if the trader or trading company has obtained a deduction in relation to the original contribution.

However, such mutual concerns might be wound up or dissolved and money or money's worth, representing the assets of the mutual concern, will be distributed to its members. If this occurs and the assets in

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