BIM24995 - Meaning of trade: mutual trading and members clubs: tax cases referred to in guidance
Source: gov.uk (2025-07-09)


Alphabetical order by names of the party

The table below identifies the:
- principle established
- names of the parties
- BIM page, and
- Tax case reference
for each of the cases referred to in the guidance material on the mutual trading and related issues.

Principle established

Names of the parties

Page

Tax case reference

Crucial factor is nature of transactions

Ayrshire Employers Mutual Insurance Association Ltd v CIR

BIM24027 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24027), BIM24105 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24105)

27 TC 331

No need for profit seeking motive

Brighton College v Marriott

BIM24045 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24045)

10 TC 213

Deduction for costs saved by members’ services

British Legion, Peterhead Branch, Remembrance and Welcome Home Fund v CIR

BIM24475 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24475), BIM24775 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24775), BIM24794 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24794),BIM24796 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24796)

35 TC 509

Distribution by Mutual concern in winding up

Brogan v Stafford Coal & Iron Co Ltd

BIM24550 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24550), BIM24600 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24600)

41 TC 305

Apportionment of expenses

Carlisle & Silloth Golf Club v Smith

BIM24210 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24210), BIM24360 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24360), BIM24460 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24460), BIM24465 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24465), BIM24470 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24470),

6 TC 48 & 198

‘Not for profit’ does not preclude trading

CIR v Hyndland Investment Co Ltd

BIM24045 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24045)

14 TC 694

Whether trading

CIR v Livingston & Others

BIM24045 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24045)

11 TC 538

Difference between proprietary and members’ club

CIR v Stonehaven Recreation Ground Trustees

BIM24210 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24210)

15 TC 419

Is mutual insurance a trade?

CIR v The Cornish Mutual Assurance Co Ltd

BIM24040 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24040), BIM24100 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24100), BIM24155 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24155)

12 TC 841

Difference between proprietary and members’ club

CIR v The Eccentric Club Ltd

BIM24210 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24210)

12 TC 669

-

Dublin Corporation v M’Adam

BIM24030 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24030)

2 TC 387

Bulk buying group trading as principle

English & Scottish Joint Co-operative Wholesale Societies Ltd v The Commissioners of Agricultural Income Tax, Assam

BIM24786 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24786), BIM24788 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24788)

1948 AC 405

Whether trading

Erichsen v Last

BIM24045 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24045)

4 TC 422

Contributors may come and go

Faulconbridge v National Employers’ Mutual General Insurance Association Ltd

BIM24105 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24105), BIM24110 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24110)

33 TC 103

Control of a members’ club

Fletcher v ITC

BIM24235 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24235)

1972 AC 414

Payments to trade protection associations

Grahamston Iron Co v Crawford

BIM24805 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24805)

7 TC 25

Municipal water supply

Harris v Corporation of the Burgh of Irvine

BIM24155 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24155)

4 TC 221

Destination of profits has no bearing on assessibility

Hutchinson & Co (Publishers) Ltd v Turner

BIM24470 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24470)

31 TC 495

Surplus must go back to contributors and no one else

Jones v The South West Lancashire Coal Owners’ Association

BIM24110 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24110), BIM24115 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24115), BIM24410 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24410)

11 TC 790

The practicalities of S54 Corporation Tax Act 2009 and S34 Income Tax (Trading and Other Income) Act 2005

Korner v CIR

BIM24460 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24460)

45 TC 287

-

Last v The London Assurance Corporation

BIM24035 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24035)

2 TC 100

Effect of shareholding

Liverpool Corn Trade Association Ltd v Monks

BIM24160 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24160), BIM24405 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24405)

10 TC 442

Payments to trade protection associations

Lochgelly Iron and Coal Co Ltd v Crawford

BIM24805 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24805)

6 TC 267

The practicalities of S54 Corporation Tax Act 2009 and S34 Income Tax (Trading and Other Income) Act 2005

McLaren v Mumford

BIM24460 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24460)

69 TC 173

What is mutual trading

Municipal Mutual Insurance Ltd v Hills

BIM24015 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24015), BIM24025 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24025), BIM24105 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24105), BIM24665 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24665)

16 TC 430

Co-operative dividends

Pope v Beaumont

BIM24560 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24560)

24 TC 78

Whether trading

Ransom v Higgs

BIM24045 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24045)

50 TC 1

Members must control the common fund

Revesby Credit Union v The Commissioner of Taxation for the Commonwealth of Australia

BIM24120 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24120)

112 CLR 564

Trading is not a question of motive

Royal Agricultural Society of England v Wilson

BIM24045 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24045)

9 TC 62

The categories of income are exclusive

Salisbury House Estates Ltd v Fry

BIM24040 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24040)

15 TC 266

Can a taxpayer trade with themselves

Sharkey v Wernher

BIM24035 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24035)

36 TC 275

Co-operative dividend satisfied by shares

Staffordshire Egg Producers Ltd v Spencer

BIM24560 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24560)

41 TC 131

-

Styles v New York Life Insurance Company

BIM24035 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24035), BIM24040 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24040), BIM24100 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24100), BIM24155 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24155), BIM24160 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24160), BIM24210 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24210), BIM24788 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24788)

2 TC 460

Members’ club only liable on profits from non-members

The National Association of Local Government Officers v Watkins

BIM24210 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24210)

18 TC 499

Deductibility of trader’s payments to a mutual trader

Thomas v Richard Evans & Co Ltd

BIM24950 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24950)

11 TC 790

Control of a members’ club

Westbourne Supporters of Glentoran v Brennan

BIM24225 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24225), BIM24120 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24120)

SPC 22

The practicalities of S54 Corporation Tax Act 2009 and S34 Income Tax (Trading and Other Income) Act 2005

Wildbore v Luker

BIM24460 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24460)

33 TC 46