BIM24610 - Mutual trading & members clubs: distributions: ICTA88/S491: when does it apply?

ICTA88/S491 applies on the winding up or dissolution of a body corporate that has at any time carried on a trade that consists of or includes any mutual business. The section applies whether the mutual trade was confined to members of the body corporate or not.

For this section trade includes any business of mutual insurance or mutual trading (ss9). But it does not include any trade all the profits of which are chargeable to tax (in particular any such trade carried on by an Industrial and Provident Society) - ICTA88/S491(11).

ICTA88/S491 refers to professions and vocations in the same way as it applies to trades - ICTA88/S491 (10).