CTM41310 - Particular bodies: unincorporated associations: examples

There are a wide variety of unincorporated associations varying from small thrift clubs to substantial business organisations. In all cases, the facts of the particular organisation must be looked at.

Unincorporated associations can include:

• Various types of members’ club.
• Investment clubs (see CTM40650).
• Thrift funds and Christmas or holiday clubs (see CTM40810).
• Voluntary organisations, including those set up ‘for good causes’.
• Religious communities.

Unincorporated members’ clubs are likely to be unincorporated associations. There is information about the tax position of members clubs in CTM40100 and online at http://www.hmrc.gov.uk/guidance/clubs-societies.htm (‘Clubs, Societies and Voluntary Associations’).

Voluntary organisations that are unincorporated associations may fall within the scope of ESCC4 (see BIM24794 - BIM24797).

Religious communities devoted to prayer and contemplation may be unincorporated associations and not entitled to charitable exemption. ESCB10 allows concessionary relief such that the proportion of the community’s income corresponding to the maintenance cost for each individual is treated as the individuals’ income, with corresponding relief for personal allowances etc.

Syndicates can present difficulties. They will be unincorporated associations if the members themselves control the syndicate’s business, though perhaps through managers who are directly responsible to the members. But where the management of the property is under the independent control of trustees, a syndicate will not be an unincorporated association.