What is mutual trading?

Mutual trading is where members form a co-operative society in order to conduct trade for their mutual benefit. Examples include purchasing co-operatives and marketing co-operatives, where members come together to buy or sell goods and services, using the co-operative as a conduit, or agent, for their trade.

If a mutual trade exists, the business is exempt from tax on those profits. Depending on its activities, this can result in significant tax savings,

The 'profits' of mutual trading are not subject to UK corporation tax as they are not, strictly speaking, profit but are more correctly regarded as a surplus of

A body engaged in mutual trading will only be free from tax on its trading activities. It will remain taxable on all other income and gains, including

Companies For issues relating specifically to companies carrying on mutual trading, see ¶806-800.

An investor is buying or redeeming mutual fund shares directly from the fund itself. This is different from stocks and ETFs, wherein the"What Are Mutual Funds? · How Mutual Funds Trade · Mutual Fund Charges and...

5350 Mutual trading. It is a basic rule that: 'No man … can trade with himself [or] make … taxable profit by dealing with himself.' In other words, a person's

There is no statutory definition of mutual trading within the Income Tax. (Jersey) Law 1961 (“the Law”). Nevertheless the principle that no one

This income is used to meet legal, accountancy and administration fees arising from the investment processes. There is no profit motive and it is

Get free access to the complete judgment in Medical Defence Union Ltd v Revenue & Customs (CORPORATION TAX - mutual trading) on CaseMine.