I have recently taken on a non-audit British Legion Club.
During the last accounting period they sold one of their houses that they owned and let out.
I am just after confirmation that my thinking is correct on this. Although this a mutual society and not generally taxable, the gain on the sale of the property should fall within the taxable bracket as it is not a trading asset (therefore utilised by members). The income from rent has always been taxable.
They previously owned 2 other houses and looking back through accounts on the Friendly Society website it appears they paid CGT on those. Ironically, I used to work for the previous Accountants and some of the writing on the annual returns is actually mine from 20 years ago!