Commentary

B6.211 Mutual concerns carrying on a property business

Business tax
Business tax | Commentary

B6.211 Mutual concerns carrying on a property business

Business tax | Commentary

B6.211 Mutual concerns carrying on a property business

Ordinarily, it is not possible in tax for one to make a profit from oneself and therefore the business of mutual clubs falls outside the charge to tax. When a mutual concern carries on a property business, however, (or receives any other income that is assessable under ITTOIA 2005, Pt 3 (ss 260–364) or CTA 2009, Pt 4 (ss 202–291) the mutuality rules are statutorily disapplied1. For corporation tax purposes this provision does not affect the operation of the co-operative housing association rules under CTA 2010, Pt 13, Ch 7 (ss 642–649)2.

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