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Do I include trading activities?

Do I include trading activities?

A club has the CT exemption for normal trading activities but this year has a land disposal which needs tax paying over on the gain.

Do I include the loss made from the trading activities or just use the chargeable gain on the CT comp?

Sorry if this is a basic question but I can't see the answer anywhere.


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By Exector
14th Jun 2012 12:00

Well if it has an "exemption"

Well if it has an "exemption", it can hardly be "normal trading activities " for tax purposes.


I would guess, but cannot know of course that the club's activities are within the scope of mutual trading, ie they do not involve supplies or services to non members or that such an element is negligible. As it's not taxable, any "losses" equally cannot be admissible for tax purposes, so you will just have to calculate and return the chargeable gain, on which unincorporated associations and members clubs are still of course  liable to CT.

Thanks (1)
15th Jun 2012 11:10

Thank you for your reply, just what I needed! 

You are correct that the trading activities fall into the scope of mutual trading.


Thanks (0)
By Exector
15th Jun 2012 11:26

You're welcome.


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