Where an entity carries on a trade, the requirements for that
trade to be a mutual trade are set out in
BIM24020.
In practice you need to establish that the constitution and
legal framework of the body is such that mutual trading is
possible, and the activities of the body comply with that
constitution.
Many agricultural co-operatives conduct their activities on
the basis of mutual trading, with the result that surpluses arising
from transactions with, and services provided to, their own members
are not liable to CT. This means that liability arises only in
respect of other profits (for example, profits on transactions with
non-members, bank interest, rents, CG and so on).
