CTM40970 - Particular Trades: mutual concerns: mutuality

Cases that deal with the concept of mutuality are:

• Styles v New York Life Assurance CO2TC460,
• Jones v The South West Lancashire Coal Owners' Association Ltd 11TC790,
• Municipal Mutual Insurance Ltd v Hills 16TC430,
• Faulconbridge v National Employers' Mutual General Insurance Association Ltd 33TC103.

You may have to deal with payments or receipts from a mutual concern to someone who carries on a trade, profession or vocation. This is covered in BIM24555 to BIM24620.

Submit any important cases where there is a large amount of tax involved and which are difficult or you are unsure about, to CT&VAT (Technical) for advice. You should also ask them for advice before you agree that a trade is partly mutual and partly not. Along with the details of the case you should send:

• an up to date copy of the body's Memorandum and Articles of Association or Rules,

and

• copies of any contracts or agreements that deal with transactions with members.